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Others Times Group picks up 1.42% in Air Deccan

Times Group picks up 1.42% in Air Deccan

Author | Source: Business Standard | Saturday, May 13,2006 7:12 AM

Times Group picks up 1.42% in Air Deccan

Bennett, Coleman and Company has acquired 1.42 per cent in the country's first low-cost carrier Air Deccan.

According to the company's draft red herring document filed with the Securities and Exchange Board of India, the stake is valued between Rs 15.70 crore and Rs 18.31 crore based on the offer price band of Rs 150 to Rs 175 per equity share.

This deal, according to the company official, was done just before it filed the draft prospectus with the market regulator. Air Deccan today said it plans to add 96 aircraft to its fleet by 2013.

"As on March 31, 2006, we have orders in place for future delivery of 96 aircraft, which are scheduled to be delivered up to December 2013," Devesh Desai, the airline's finance controller said here today.

He said the company has not yet decided on the financing of the aircraft orders. "We will decide whether we will have to go in for funding through debt or equity depending on the situation at that time," Desai said.

At present, the low-cost carrier has a fleet of 29 aircraft. It plans to add 19 aircraft in the next year, of which eight will be leased Airbus A320s, four ATR 72-500s on hire purchase and one of the same to be leased. It will also lease one ATR 42-500 aircraft. It is yet to decide the mode of acquisition of five more ATR -72-500s.

It is also yet to take a decision on the nature of the acquisition of 77 aircraft to be delivered between 2008 and 2013. Claiming to be the second-largest private airliner in India that has carried 4.1 million passengers since inception in August 2003, the company said it is planning to raise around Rs 400 crore through its initial public offer.

The issue, for which a price band has been fixed between Rs 150-175, will open on May 18 and will close on May 23.

The issue will constitute 25 per cent of the fully diluted post-issue paid capital of the company.

Tags: e4m

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