Deccan Aviation to raise Rs 400 cr through IPO

Bangalore: Deccan Aviation’s initial public offering (IPO) will commence on May 18 and will help the company to raise a sum of Rs 400 crore. The issue, which is through the 100% book-built route, is priced between Rs 150 and Rs 175 for a Rs 10 share.
Speaking to the media on the roadshow, Capt G R Gopinath, MD of the company, said that proceeds of the IPO would be used for setting up a hangar in Chennai, a training centre and setting up infrastructure at airports besides paying off debt. The total cost of debt to be repaid is Rs 132.75 crore.
Capt Gopinath said that Air Deccan offered 85 routes and 52 destina-tions to the Indian traveller and that the company's route strategy would help to grow new markets for air travel in the country.
Deccan Aviation’s revenues have grown from Rs 14.72 crore in FY'01 and stood at Rs 518.28 crore for the eight month period ended No-vember 30, 2005. The net profit stood at Rs 98.7 lakh in FY'01 but for the eight month period ended November 30, 2005 the company had a loss of Rs 117.9 crore.
14/05/06 Economic Times

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