Capt Gopinath taps PE cos for cargo biz

Mumbai: With equity markets reviving and boosting industry valuations, the pioneer of low-cost flying in India, Captain GR Gopinath, is understood to be resuming talks with private equity players to part finance his latest venture, airline cargo business.
The consultation process for potential buyers has once again started and Mr Gopinath is learnt to be seeking Rs 200 crore for a 25% stake in his new cargo company named Deccan 360, people familiar with the development said.
The talks are on with an European private equity and two US-based firms, putting the enterprise valuation of the cargo company at Rs 800 crore. Mr Gopinath had postponed similar talks in September due to low valuations.
When contacted by ET, Mr Gopinath said: “Now, I can ask private equity players my kind of price for better valuation of the company, as the market and the economy are in a revival mode. I can even time when to bring investors on board, as the business is already launched and flying.”
He declined to share the names of the private equity firms with whom he is negotiating, but people in the know said Singapore Cargo, IBM Ventures and Intel Capital have shown interest in Mr Gopinath’s airline cargo business.
28/12/09 Mithun Roy/Economic Times

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Categories: Cargo Dec 2009, Deccan 360 Dec 2009, New Dec 2009