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Friday, July 07, 2006

Kingfisher shelves IPO plan

After toying with the idea for over a year, the UB group-promoted Kingfisher Airlines has abandoned the plan for an IPO. The company was planning to raise about USD 200 million through an IPO in 2006. But, it is now having second thoughts about the viability of the option, sources said, reports The Economic Times.

A UB source said with the volatility in the market, the company would not consider this route for at least another year.

Kingfisher Airlines has the paid-up capital of over Rs 370 crore (Rs 3.70 billion). Group shareholding in the company, a 100% UB group subsidiary, will be diluted only when the company gets a proper valuation, sources said.

Large players in the civil aviation industry, who have recently opted for the IPO route, include Jet Airways and Air Deccan.

Jet Airways, India's largest carrier by market share, came out with an IPO in February 2005, with Rs 1,100 per share.

The IPO was a major success as it was heavily oversubscribed Air Deccan, however, managed to scrape through in a volatile market in March. The other airline listed in the stock exchange is the Delhi-based SpiceJet.

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