Deccan Aviation’s angel investors hit pay dirt

Bangalore: Deccan Aviation may be a poor man’s airline but it has not been so for some of its investors who have made millions out of their initial investment into the venture.
The man who helped Capt G.R. Gopinath to launch India’s first low cost airline, Mr S.N. Ladhani whose Brindavan Beverages invested about Rs 1.5 crore into Deccan Aviation has been able to mop up Rs 150 crore through a combination of sale of its shares in the open market and through the open offer of the UB Group.
Brindavan Beverages and Mr Ladhani had totally about 18 per cent stake pre IPO which reduced to about 9 per cent after the open offer and now stands at a minuscule 3 per cent which indicates Mr Ladhani’s dwindling interest in the airline.
ICICI Ventures and Capital One which invested about $40 million and had about 16 per cent stake each in the airline are learnt to have mopped up a total of around $90 million, sources close to the airline said. A clutch of NRIs, whose company Golden Ventures is based out of Mauritius, also made around $40 million from an initial investment of around $5 million.
15/04/08 K. Giriprakash/Business Line

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Categories: Deccan Apr 2008