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Indian private carrier Jet Airways Saturday announced its plans to raise US$800 million from the overseas and domestic markets and permit foreign funds to hold up to 49 percent in the company's capital, Indo- Asian News Service reported.
According to company sources, the money will be used to finance the purchase of their rival Air Sahara for US$510 million, fund fleet acquisition and raise cash for the day-to-day operations of the airline.
The public offerings would be subject to necessary approvals, including a nod from shareholders, the sources added.
The US$800 million offer could be in the form of issuing shares in the domestic markets or an international offering of global depository receipts, American depository shares or foreign currency bonds, Indian stock exchanges were told.
The US$800 million includes a green shoe option. The board also authorized itself to borrow money up to a total outstanding debt of 150 billion Rupees (US$3.4 billion).
Jet Airways had announced last month that it would buy rival Air Sahara to make the carrier India's largest -- even larger than state-owned Indian Airlines -- with a fleet of 90 aircraft.
The airline had also announced at the Paris Air Show last year that it would buy a large fleet of Boeing aircraft for some US$2.53 billion, with deliveries set to commence from mid- 2007.
Jet had entered the capital market with its maiden issue in February last year to raise US$436 million. Following that, foreign funds were allowed to hold up to a maximum of 24 percent equity in the airline, which is now being enhanced to 49 percent.
Jet Airways took wings May 5, 1993, and has emerged as India's largest private airline, flying to 43 destinations in India and to London, Kuala Lumpur, Singapore, Colombo and Kathmandu, with 1,924 flights weekly.
It is promoted by 56-year-old Naresh Goyal, who once lived in the Gulf and London and has managed to create a personal fortune of US$1.9 billion by making the airline public. He was also ranked the 16th richest Indian by the Forbes magazine.
(Xinhua News Agency February 5, 2006)
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