July 9, 2006
Kingfisher shelves IPO plan
Kingfisher Airlines has scrapped the plan for an IPO as of now. The company was planning to raise about USD 200 million through an IPO in 2006, reports Economic Times.
With the volatility in the market, the company would not consider this route for at least another year, said a company official.
Kingfisher Airlines has the paid-up capital of over Rs 370 crore. Group shareholding in the company, a 100% UB group subsidiary, will be diluted only when the company gets a proper valuation.
The IPO was a major success as it was heavily oversubscribed Air Deccan, however, managed to scrape through in a volatile market in March. The other airline listed in the stock exchange is the Delhi-based SpiceJet.
Large players in the civil aviation industry, who have recently opted for the IPO route, include Jet Airways and Air Deccan.