Over and above the receipts, UB will also issue warrants worth Rs 720 crore convertible into equity share at a face value of Rs 10 each.
The UB board also approved the increase in limit of foreign investment in the company to 60% from 49% and a dividend of 10% for the year ended March 31.
Meanwhile, at the Fortune Global Forum in the Capital, Mallya said that he himself would pick up Rs 720 crore of the QIP to maintain his shareholding in the UB Group.
The chairman of Kingfisher Airlines also said that the company had hired management consulting firm Accenture to study the possibility of integrating operations of the Air Deccan and Kingfisher Airlines. Earlier this year, Mallyas UB Group acquired 26% stake in low-cost carrier Deccan Aviation for Rs 550 crore. UB has since then scaled up its stake in the budget airline to 46% by buying another 20% equity in an open offer.
He said that Air Deccan has sought approval from the ministry of civil aviation to fly overseas from next year and is looking to start flights to Middle East, South East Asia and the US.
Revenues of India's largest private carrier are expected to more than double to $3 billion in three years from the current $1.4 billion Naresh Goyal, chairman of Jet Airways said on the sidelines of Fortune Global Forum on Tuesday. Domestic and overseas operations would contribute equally to the total revenues of the carrier, he added.
We aim to become one of the top five airlines in the world in the next five years, Goyal said.
The chairman also added that the carrier is in the process of inducting 15% domestic capacity and also expects a 15% growth in its domestic revenues every year.
As our revenues improve, so will our cost per unit, Goyal said adding that we are not looking for market share, we are looking for profits.