Raising capital: Kingfisher Airlines plans to issue GDRs
INDIA’S second largest private carrier Kingfisher Airlines plans to raise over $100m (£65.7m) through a fund raising initiative, an official of its parent UB group said yesterday. Kingfisher is likely to raise the money by issuing global depository receipts (GDRs), Ravi Nedungadi, chief financial officer of UB group, told reporters at its headquarters in Bangalore. The timing of the GDR issue is not known, but it could be launched in eight to ten weeks, media reports said. A GDR is usually a dollar-denominated certificate showing ownership of shares in a company, which can be traded in by foreign investors, similar to an American Depository Receipt. “There is interest. Both (Chairman) Vijay (Mallya) and I have met a lot of investors in Asia, Europe and the US,” Nedungadi told reporters. “People are interested in investing into aviation in India.” Most of India’s airlines have seen a rise in passenger traffic and revenues in the last six months, after they were badly hit by the global economic downturn in 2008. Kingfisher showed a third-quarter net loss in its last quarterly earnings in January, but said the outlook for the industry was improving.
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