Ahead of IPO, AI wants to raise equity base to Rs 1,500 crore

New Delhi: In an attempt to adequately capitalise the company ahead of its IPO in 2010, Air India has sought a quantum jump in its equity base from Rs 145 crore to Rs 1,500 crore.
The recently integrated National Aviation Company of India (Nacil), formed after the merger of Air India and Indian Airlines, is looking at avenues to increase its financial standing when it goes public.
The airline has the largest number of fixed assets in the Indian aviation industry, along with a combined order of Rs 40,000 crore worth for 111 new aircraft and an annual turnover of Rs 16,000 crore. It plans to add these new aircraft
to its fleet to take it to over 200 aircraft in the next three years.
Air India director public relations Jitendra Bhargava confirmed that the airline has asked for additional equity.
“We have sent a proposal to the government to increase the equity base of the airline. With the changes in the newly integrated entity, we are looking at a new equity structure, which will portray the real financial standing of the airline,” Mr Bhargava said. An enhanced equity base will give the government more flexibility in terms of equity dilution and fund raising at the time of the IPO.
15/09/08 Chanchal Pal Chauhan/Economic Times

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Categories: NACIL Sep 2008