Kingfisher Airlines is gearing up with fresh business plan for a share sale, reports The Wall Street Journal. As the company glares into increasing price of jet fuel, the chairman of India's second-largest airline by market share said the plan is to woo prospective investors in its intended share sale.
"We had presented a business plan in February, of course assuming crude oil at USD 90 a barrel. The minute crude oil prices started going up to USD 120 plus a barrel, prospective investors asked us to rework our business plans, which we did," said Vijay Mallya.
The report shares that the airlines had earlier planned to raise about USD 250 million by issuing global depositary receipts to cut debt. The GDR issue however has been deferred several times since last year. The report highlights that the first delay was due to an elaborate plan to restructure its debt, then the airline was unable to decide on a suitable price for the share sale and finally, it says that the holdup was due to the rising price of jet fuel, which is the biggest cost for an Indian carrier.
(Source: The Wall Street Journal)
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