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UB group may offer stake in airline biz to raise funds
Low cost airline Simplify Deccan is expected to get a new name once the merger with Kingfisher Airlines gets legal sanction even as its parent, UB Group, is now open to offer stake for raising funds.
Low cost airline Simplify Deccan is expected to get a new name once the merger with Kingfisher Airlines gets legal sanction even as its parent, UB Group, is now open to offer stake for raising funds.
With losses totalling up to over Rs 2,500 crore from the two airlines, the group now plans to raise between Rs 200 crore and Rs 300 more than what it had planned earlier to fund the growth of the merged entity.
It had earlier planned to raise around Rs 1,000 crore, out of which it had sought to raise debt from ICICI Bank worth Rs 500 crore.
"We are open to various options including offering stake to raise funds," a senior UB group official told Business Line. He said the group would like to raise maximum funds by offering the minimum of stake. "What is more important is the amount of money we can raise," the official said. But raising debt for rest of the funds was no longer the first option.
The official said that once the merger gets the legal sanction, the group would be keen to change the name of low cost airline, Simplify Deccan to something which is close to the name of Kingfisher Airlines. "The low cost carrier will carry the name of Kingfisher but will be slightly different as we want to keep the identities of both the airlines separate," he said.
With losses totalling up to over Rs 2,500 crore from the two airlines, the group now plans to raise between Rs 200 crore and Rs 300 more than what it had planned earlier to fund the growth of the merged entity. 
