Kingfisher Airlines to raise Rs 450 crore

Private equity route or market listing likely

BY A CORRESPONDENT
February 13, 2006

Kingfisher Airlines is planning to raise Rs 450 crore through the sale of its shares. The shares will be sold either to a private equity fund or by making a public offer.

Kingfisher Airlines appointed brokerage and investment banking firm CLSA as the financial advisor for the process.

Nigel Harwood, Kingfisher Airlines CEO said, "the ballpark figure for the funds to be raised from the market is somewhere close to $100 million. It has not yet been decided whether it will be through an initial public offering or private placement. The issue is being discussed internally, and the question will be put forth before the board later this month.”

Kingfisher Airlines, which started its operations nine months back is promoted by Vijay Mallya of UB Group.

UB has already invested Rs 350 crore ($70 million) into Kingfisher Airlines, he said. Since the airline is in the way to expanding its services in a big way, it needs large capital investment.