| "The airline will become profitable with in 18 to 24 months with the help of better yield management," a senior company executive said. |
| He said that the company's expenses are 50 per cent lower in terms of cost compared to full service airlines. |
| "Air Deccan has better aircraft utilisation and is offering more seats. As of March 31, the airline has orders in place for future delivery of 96 aircraft which are scheduled to be delivered up to December 2012," he said. |
| The airline will hit the capital market with its inital public offer (IPO) of 2.45 crore equity shares on May 18 through the book building process. The issue closes on May 23 and the price band has been fixed at Rs 150 to Rs 175. |
| The company proposes to raise Rs 368.19 crore at the lower end of the price band and Rs 429.55 crore at the higher end of the price band. The issue will constitute 25 per cent of the fully diluted post issue paid-up capital of the company. |
| Enam Financial Consultants Private and ICICI Securities are book running lead managers for the issue and Karvy Computershare Private is the registrar to the issue. |
| The issue is being made through the 100 per cent book building process wherein at least 50 per cent of the issue shall be allotted to Qualified Institutional Buyers (QIBs) on a proportionate basis out of which five per cent shall be available for allocation on a proportionate basis to mutual funds only. |
| Further, up to 15 per cent of the issue or the issue less allotment of the QIB portion and allocation to retail individual bidders will be allocated to non-institutional bidders. |
| The equity shares of the company are proposed to be listed on the NSE and the BSE. |
| The company proposes to utiltise the funds in setting up a training centre at Bangalore, setting up a hangar facility for base and medium-level maintenance checks at Chennai; and setting up infrastrucuture at airports. |
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