Kingfisher may raise Rs6,000 crore for aircraft purchase and infrastructure

Bangalore: Kingfisher Airlines may raise funds through an IPO, as well as private investments, for the acquisition of aircraft and setting up of business infrastructure. According to Kingfisher Airlines chairman, Vijay Mallya, the funds would be required to finance the purchase of the world's largest aircraft, the Airbus A380, the first of which Kingfisher expects to take into possession later this year or early next year.

Mallya has also said that parent company, UB Holdings, has already sought shareholders' approval for raising up to Rs6,000 crore through such a mix of funding options.

He has also revealed that his company has received a proposal from a major investor early on in the week and that talks would commence shortly. In this regard he has said that he would not dilute more than 49% equity in Kingfisher Airlines.

Kingfisher has so far placed orders for five A380s, which would likely form the backbone of the airline's international operations. The airline is also due to take a call on converting five more A380s to firm orders in June this year.

As for an ongoing controversy regarding his interest in India's pioneering low cost carrier (LCC), Air Deccan, Mallya said that he was more interested in buying the LCCs assets rather than pursuing its business model. This, he clarified, was the reason he had shown an interest in acquiring the airline.