Kingfisher Airlines might raise funds for aircraft purchase through IPO proceeds

Indian airline company Kingfisher Airlines could raise funds to buy the world’s largest aircraft A380 through IPO proceeds. The company could also get the required funds from private investors.

They are currently scheduled to get the first plane by the end of this year or early next year. Kingfisher Airlines chairman, Vijay Mallya spoke about their plans: “No airline can do without an IPO. Sooner or later we have to float one.”

He added that the parent company UB Holdings has already sought shareholders’ approval for raising up to Rs 6,000 crore through a mix of funding options.

Kingfisher Airlines has till now placed an order for five A380s and they have options to order another five.

Mallya also has plans to set up a wholly owned subsidiary overseas to carry out its international operations. He wants to start the international operations of the airline as soon as possible.

He said that the company has already received a proposal from a major investor early this week. However, he has no plans to dilute more than 49% equity in Kingfisher Airways. Mallya said: “We will continue to hold at least 51 per cent in the airline at any given point of time.”

Popularity: 16%