Air Deccan hopes to steer IPO out of debut-day turbulence

Mumbai: Deccan Aviation, whose IPO opened on Thursday, the day the market crashed, is hoping that investor interest in the issue will revive this week. The issue closes on Tuesday and had been subscribed only about 10% by Saturday. Investors did not want to put their money into the issue because the market was very volatile, says the Air-Deccan ‘s Capt Gopinath, who is in London to market the issue.
Merchant bankers to Deccan Aviation, say they are confident that the issue will go through. “The extent of oversubscription will depend on the state of the market” Munesh Khanna, partner and managing director, Enam Financial said.
The promoters had already brought down the issue price of the company on concern over investor appetite for a yet to be proven model. The IPO of 2.45 crore equity shares is being sold at a price band of Rs 150 to Rs 175. The company hopes to raise Rs 380 crore at the lower end of the price band and Rs 444 crore at the higher end.
22/05/06 Economic Times

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