India's low-cost airline - Air Deccan, is all set to launch an IPO later this year.
The IPO will be more of a brand enhancement exercise than just a pure fund raising effort For Air Deccan. According to Gopinath, the strategy is not just to make Air Deccan “a common-man's airline” but share its ownership with its customers, somewhat similar to the Virgin Blue model in Australia.
Over the next few months, Gopinath said, “the airline's operations will stabilise and reinforce the faith of existing as well as future investors in the company”. It is at present busy interacting with various international private funds and institutions to raise between $50-60 m by off-loading 20-30% of its equity. The airline expects to clock a turnover of $124 m in the first full year of operation (2004-05).
The Economic Times has this story.
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