Air India puts IPO plan on hold

Mumbai: National air carrier Air India today ruled out raising money through an initial public offering (IPO) this year and said it would approach the government for more money to strengthen its equity base.
“We will not be going for our IPO this year,” Air India’s newly appointed chairman and managing director Raghu Menon told reporters here.
“We will like the government to provide equity to us. It (the government) has done it in the past for certain companies ... It depends on what case we build up,” Menon said.
Air India will build a well-considered case before approaching the government on the matter, he said. “I will like to approach the government for further infusion of equity in our company, because of the huge borrowings that we have taken to purchase new aircraft,” he added.
On the IPO, Menon said he had “really not gone into this issue.” However, Air India is looking at employee stock options (ESOPS) and this scheme shall be ready in the next six months, he said.
01/04/08 The Telegraph

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Categories: NACIL Apr 2008