Interest perks up in Kingfisher’s GDR issue
06 Jun 2011
Singapore: Sagging fuel prices will have lifted tycoon Vijay Mallya's spirits as investors are once again looking to invest in Kingfisher Airlines' global depository receipts (GDR) issue. The issue is intended to raise around $300 million.
"We had to postpone GDR issue as the fuel prices were going sky high. When we had planned this out, it was on the basis of the fuel prices remaining at around $90 per barrel. But the prices shot up to $120. So clearly, it had to be postponed. Now with the fuel prices coming down, the investors are engaged with us," he said.
The struggling carrier's bid to reduce its debt through a GDR issue was planned for December last year, but as stock prices slumped the issue was shelved.
The company has appointed Citi, JP Morgan and CLSA as its merchant bankers.
Here to attend the annual general meeting of the International Air Transport Association (IATA), Mallya announced that his carrier would join the 'oneworld' alliance of airlines in February next year.
Confirming this, 'oneworld' CEO Bruce Ashby said, Kingfisher and airberlin, which is Europe's fifth largest airline, have already signed agreements to become members-elect to join the alliance early 2012.
Mallya also said he would "continue to press the government to review its aviation FDI policy" to allow foreign airlines to pick up stake in Indian carriers.
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