Deccan aviation slips on debut

Mumbai, June 12 (UNI) Deccan Aviation, a domestic carrier has made a flat debut on the Bombay Stock Exchange (BSE) at Rs 148.05, as against its offer price of Rs 148. However, the stock failed to gain momentum and tumbled in line with a broad-based sell-off in the market to Rs 98, a drop of 34 per cent to its debut price, according to a release issued here.

Currently, the stock has trimmed its losses and is down at Rs 109 on volumes of over 9.48 lakh shares on the BSE.

Deccan Aviation had hit a rough patch during its bidding process when the price was revised from its original price band of Rs 150-175 a share to Rs 148 a share due to a sudden slump in the market, resulting in a lower demand.

However, after the revision, the issue was over-subscribed by 1.23 times. The company is only the second domestic carrier to go public. Its rival aircraft major Jet Airways had seen its IPO subscribed by 10 times in a price band of Rs 950-1,125.

Deccan Aviation was formed in 1995 and operates under the name of Air Deccan. Air Deccan has 48-seater ATR-42s in operation in its fleet and has an Airbus A-320, a 180-seater aircraft. The airline has recently acquired an ATR 72-500 aircraft, release added.

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