Gopinath may sell 2% in Deccan

New Delhi: Capt GR Gopinath may sell 2% stake in Air Deccan, which is now being merged with Kingfisher Airlines of the UB Group chief Vijay Mallya. Mr Gopinath holds 9.11% stake in Air Deccan of which 7.11% is locked-in.
At current market price of Rs 90 a share, the Bangalore-based entrepreneur has a total holding of around Rs 111.18 crore. Mr Gopinath plans to use proceeds from the sale of 2% stake in Air Deccan and raise Rs 200 crore from the market to part fund his proposed air cargo business. Mr Gopinath has mandated Mumbai-based Edelweiss Capital to find investors for the proposed venture.
Air Deccan promoters, including Mr Gopinath, sold 26% stake in the company last year to Mr Mallya for Rs 550 crore.
Maintaining that he would stay invested in Air Deccan, Mr Gopinath said: “We are mortgaging our locked and unlocked shares as collateral to raise the fund. Maybe, we would divest 2% stake in Air Deccan. Of our total holding in the company, 7.11% stake is bound by a lock-in till June next year.”
Deccan Cargo, the company floated by Mr Gopinath for air cargo express and hub operation, plans to invest around $25 million in the first phase to set up its base in Nagpur. The firm signed an MoU with Maharashtra government last month to set up a logistics hub in the city.
07/08/08 Nirbhay Kumar/Economic Times

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Categories: Cargo Aug 2008, Deccan Aug 2008