Air deccan as 16 per cent share in air travel

Bangalore, May 13: Notching up 16 per cent of the air traffic in a short span of time, country's leading low cost flier Air Deccan hoped to increase its flights to over 300 by next month.

Talking to newsmen here to announce the IPO of Deccan Aviation to raise Rs 400 crore to fund infrastructure projects of the Carieer, Air Deccan Managing Director G R Gopinath said that Air Deccan had already created a panic among the other flight operators resulting in lowering of prices.

''Our aim is to ensure every Indian has an opportunity to fly'' Mr Gopinath said adding that as many as 56 destinations were currently being touched by Air Deccan with seven bases across the country.

Company Chief Financial Officer Mohan Kumar said that the proceeds of the IPO would not be used for aircraft purchase or leasing and would be purely invested on a hanger to come up in Chennai and to set up a pilot training centre in Bangalore.

The issue of 24.546 million equity share of Rs Ten each at a premium on a price band of Rs 150 to Rs 175 would constitute 25 per cent of the fully diluted post issue paid up capital of the company.

Atleast 50 per cent of the suares would be allotted to qualified institutional buyers on a proportionate basis out of which five per cent shall be available for allocation on a proportionate basis to mutual funds.

The issue opens on May 18 and closes on May 23.

UNI