New Delhi: Vijay Mallya-promoted Kingfisher Airlines is targeting an equity infusion of around Rs2,000 crore through strategic and financial investors and may even monetise aircraft order book over time.
The infusion would happen upon “regulation change” and the equity investment will be used to de-leverage the balance sheet, the company told investors recently.
“Likely change in legislation of 25% investment by foreign airlines is expected to bring strategic partners eyeing a play in the Indian market which is expected to be the fastest growing market in the next few years,” it said.
Mallya had recently said that he would rather raise funds through equity than debts.
“I am talking of raising equity. I have not talked about additional borrowing,” he had said.
Airlines network, brand franchise and easier operational environment makes it an attractive option for equity investment, the carrier told investors.
Based on the discussions the airline is holding, it estimates gains of up to Rs500 crore by way of deferment of aircraft schedule.
When asked how much equity is Mallya mulling to sell, the airline spokesperson said, “It is not our policy to comment on issues that are price sensitive. Mallya has already stated that we have signed a term with a PE (private equity) firm and we are unable to comment or elaborate beyond that”.
Kingfisher made a loss of Rs626 crore for the third quarter. The present market capitalisation of the airline is Rs 865.53 crore.