Kingfishers $100-mn GDR likely by Q2

Written by Agencies | New Delhi | Updated: Jun 1 2010, 00:52am hrs
Private carrier Kingfisher Airlines expects to come out with its USD 100-million Global Depository Receipts (GDR) issue by July, a senior official said today.

I expect our (GDR) issue by early second-quarter. We have not fixed the date..., Ravi Nedungudi, Chief Financial Officer of UB Group, which owns the airline, told PTI here.

The Vijay Mallya-owned airline also plans to raise another USD 100 million via rights issue.

The proceeds from the GDR and the rights issue would be primarily used for reducing the companys debt, which, as at March 31 this year, stood at Rs 6,000 crore, he said.

The company was fine-tuning the details of the rights issue, Nedungudi said. We have not yet finalised the size nor its pricing. The proposed fund raising would be in addition to USD 400 million which the company has been mulling to raise through private equity route for quite sometime now.

Kingfisher has narrowed down its net loss by Rs 493 crore last fiscal to Rs 1,647 crore.

The UB Group official described the present time as good for fund-raising as the market was improving. Airlines do need equity. The market is improving and we want to take advantage based on our audited results. Kingfisher has appointed Citi, JP Morgan and CLSA as its merchant bankers, he added.