Air Deccan: Deccan Aviation Limited to float 24.5 million shares

Air Deccan: Deccan Aviation Limited to float 24.5 million shares

The parent company of the budget airline company Air Deccan, Deccan Aviation Limited has proposed their plans to enter the capital market with a public issue of 24,546,000 equity shares. These shares would be priced at Rs. 10 and would be issued through the 100 per cent book building process.

The company would be using these resources to further fund the expansion of the airline company and would constitute 25 per cent of the fully diluted post issue paid-up capital of the company. The company has already filed draft DRHP with SEBI for the purpose.

Some of the upcoming plans of Air Deccan are to setup a training centre, a hangar facility for basic and medium level maintenance checks at Chennai and creating infrastructure at airports. In addition, they also have plans to spend on market development initiatives.

Air Deccan was first budget airline to start their operations in the Indian market and have been pretty successful in their operations. The cover the maximum destinations in the domestic market and now faces challenges from new players like GoAir, IndiGo Airlines and Kingfisher Airlines.