The National Aviation Company of India Limited (Nacil), formed after the merger of Indian Airlines and Air India would list in the second half of 2008. ?The two public air carriers were merged to synergise cost structures and operations of the two airlines and bring down cost,? civil aviation minister Praful Patel said on the sidelines of the World Economic Forum. ?We are looking at broadbasing the ownership via an initial public offering and offering stock options to employees of the airline to improve service and responsibility of the airline,? Patel said.
The airline is looking at offering around 10 to 15% dilution in order to raise funds in the initial public offer (IPO) the minister said.
Whether the employee stock options are part of this percentage is not clear. The minister also said that the airline would offer around 4-5% as employee stock options (Esops).
?This is to make sure that even the employees have a say in the running of the airline,? Patel said.
?The airline needs a huge amount of equity infusion of around Rs 1,000 crores for its acquisition and expansion plans,? the minister said.
Nacil?s equity base stands at around Rs 145 crore at present, analyst at the forum said.
The national carrier was expected to list on the stock exchanges early next year but due to the huge losses presented to the board at the recent board meeting and a number of complaints and media attention to service slip-ups, the IPO has been postponed, the analyst said.