Jet, Spicejet, Kingfisher to raise funds via QIPs

Institutional investors are flocking back to the aviation sector. After mon-ths long futile efforts to raise funds, three leading domestic airlines — Jet Airways, SpiceJet and Kingfisher Airlines have hit the market once again to raise funds.
While SpiceJet is close to raising $100 million, Jet is hoping to raise $150-200 million — all through qualified institutional placement (QIP).
An investment banker familiar with SpiceJet’s move said the airline has almost sewed up the QIP.
Kingfisher is also hoping to raise funds, either through private equity or QIP. It had received shareholders’ nod to raise $100 million.
On December 24, Jet Airways received clearance from the Cabinet Committee on Economic Affairs (CCEA) to raise $400 million from investors through QIP. The proposal was made to the Foreign Investment Promotion Board (FIPB), which referred it to the cabinet.
Jet needed to induce fresh equity to service an estimated long-term debt of Rs 11,500 crore, and short-term debt of Rs 3,500 crore. It reported a loss of Rs 406.7 crore in the second quarter (July-September), up from Rs 384.5 crore loss in the same period last year.
30/12/09 Anto T Joseph/Rupesh Subhash Janve/mydigitalfc.com

To Read the News in full at Source, Click the Headline

Categories: Jet Airways Dec 2009, Kingfisher Dec 2009, spicejet Dec 2009