Air Deccan IPO coming later this month

After the smash hit IPO of Reliance, we have another interesting IPO coming later this month. Deccan Aviation would be launching its IPO in the Indian stock market on May 18 with an initial public offer (IPO) of 2.5 crore equity shares of Rs 10 each in the price band of Rs 150 to Rs 175.

The company said in a statement that the issue would constitute 25% of the post issue paid-up capital of the company. It would close on May 22 and market analysts are expecting that this IPO would do well in the market as well considering the high reputation of the company.

Air Deccan would be using these funds for fleet acquisition, expanding business and creating infrastructure. They are using the services of Enam Financial Consultants Pvt Ltd and ICICI Securities for this IPO.

The IPO issue is being made through the 100% book building process. As many as 50% of the issue shall be allotted to qualified institutional buyers on a proportionate basis. This would include 5% of the QIB portion that would be specifically reserved for mutual funds.

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