*IndiGo* is raising funds to finance the expansion plans, which includes the proposed start of overseas flights.
IndiGo has hired *UBS AG, Morgan Stanley, Credit Suisse Group* and *Citigroup Inc*. to raise the money either through PE or an IPO. IndiGo - promoted by *Rahul Bhatia* and ex-US Airways chief executive *Rakesh Gangwal* - is planning to begin flights to South and South-East Asia, West Asia and China after it completes the mandatory five years of operations in August next year. It is also planning to add 19 more Airbus A320 planes to its fleet of 25 by the end of 2011. The company posted a profit for the first time in March 2009 since its launch in 2006. It posted a profit of Rs 82.16 Cr on revenues of Rs 1,876 Cr for the year ended March'09. Transaction Note The Indian Airline sector has been through a tough period in the last two years after the terror attack in Mumbai and than a spike in the fuel prices as well as the economic slowdown. But there has a been a turnaround in the past few months with an increase in the passenger traffic. The passenger traffic grew by 20.54% in Jan-Mar. All the private carriers posted seat factors of over 72% in Feb-March, while three budget airlines- SpiceJet, Indigo and Paramount - recorded over 75%. Other Indian carriers are also looking to launch overseas flights. Jet has launched a daly Mumbai - Johannesburg flight, while Kingfisher has receved approval for seven new international routes. However, these airline companies are finding it difficult to raise funds. Kingfisher is looking to raise funds through GDR but has been delaying the plans for sometime now. Spicejet is also looking to raise funding through stake sale and is talking to Religare. It was also talking to Kalanithi Maran, but the talks seem to have fallen through over valuation differences. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
