Air India flotation later this year
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- Published 11.01.08
|Patel: Selloff mode|
New Delhi, Jan. 11: The government may sell up to 15 per cent in Air India through an initial public offering in the second half of 2008, civil aviation minister Praful Patel said here today.
“We may consider an IPO in the second half of this year,” he said after announcing the country’s first civil aviation airshow, India Aviation 2008, which will be held in Hyderabad in October.
Apart from the 15 per cent stake sale, the airline will possibly come out with an employee stock option of around 5 per cent.
Air India, which merged Indian Airlines with itself last year, has already ordered 111 aircraft from Boeing and Airbus. The airline is planning to place orders for another 100 planes.
Merchant bankers said the government was likely to raise between Rs 2,500 crore and Rs 4,000 crore through the planned public issue.
Air India has already selected DSP Merrill Lynch Ltd to advise it on its proposed issue.
The company has a paid-up share capital of Rs 153.84 crore, fully subscribed by the central government against an authorised capital of Rs 500 crore.