Gopinath ready to offload 10% stake in Kingfisher

Mumbai: With no private equity deal expected soon to finance his cargo business, Captain Gopinath, pioneer of low-cost flying in India, is open to the idea of selling his 10% stake in Vijay Mallaya’s Kingfisher Airlines.
“A couple of PE investors have approached us to invest in the cargo business, but I have postponed the process now. We will revisit it a few months later, if the valuation improves,” said Gopinath, chairman and managing director of wholly-owned Deccan Express Logistics (DEL).
The $625-million domestic express cargo market is expected to grow at 20% a year over the next five years. On his willingness to dilute his stake in Kingfisher Airlines, Gopinath said: “It depends on the valuation I get.” At today’s market price, his 10% stake is valued at Rs 51 crore.
Gopinath has already pumped in Rs 125 crore in Deccan Express Logistics and needs to raise an additional Rs 150 crore. The company, branded as Deccan 360, is expected to launch the first dedicated cargo service in India on May 27. It has already inducted an Airbus A-310 and will add two more next month.
16/05/09 Mithun Roy/Economic Times

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Categories: Cargo May 2009, Deccan 360 May 2009, Deccan Aviation May 2009, Kingfisher May 2009, New May 2009