US-based private equity giant Texas Pacific Group is among three others who are in talks with low-cost carrier Air Deccan for picking up a minority stake. Air Deccan is planning to raise around $100 mn, to be utilized for expansion, by diluting 5-7% stake to private equity firms, and has mandated Edelweiss Capital (see Related Post) for the same.
Edelweiss has short-listed 3-4 players willing to invest in Air Deccan, and a deal is likely to be signed in the next 10 days. Among them, Texas Pacific has emerged as the most aggressive bidder. Texas Pacific has made investments in airlines globally. However, it had dropped its plans to invest $30 mn in Delhi-based budget carrier SpiceJet owing to differences in valuation.
Indian airliners are tapping private equity avenues for shoring up capital to strengthen their balance sheets and to meet their expansion needs. SpiceJet has raised nearly Rs. 300 crores from private equity firms, while the Chennai-based Paramount Airways has managed to get over Rs. 80 crores. Meanwhile, full-service carriers such as Kingfisher Airlines and Jet Airways are also in talks with private equity for raising funds.
Read the article in the Business Standard.
Related Post:
Texas Pacific pulls out of investing in SpiceJet
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