Jet to raise $500 million via FCCBs
New Delhi: Jet Airways (India) plans to raise $500 million through foreign currency convertible bonds' (FCCBs) issue to fund its fleet expansion programme. The airline will also raise an additional $300 million through either a global depository receipts (GDR) or secondary capital issue in six months said a senior Jet Airways official executive.

Jet Airways is planning to acquire 30 aircraft including Airbus and Boeing for $2.4 billion and is scheduled to begin taking delivery of the new aircraft in 2007.

The company will place a special resolution for the proposed raising of funds to the shareholders at an extra ordinary general meeting (EGM) on Tuesday. The company has planned to raise an aggregate amount of $800 million inclusive of greenshoe options on the issues.

Sources said the airline was at an advanced stage of negotations with advisors, lead managers and underwriters for the proposed issue. Three major banks have pitched for the issue.

The EGM will also discuss enhancing investment limits of foreign institutional investors (FIIs) from 24 per cent to 49 per cent of the paid up share capital of the company, subject to necessary approvals and provisions.
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Mega Reliance Petro IPO due in April
Mumbai: Reliance Industries' subsidiary Reliance Petroleum's initial public offering is expected to garner between $1.1 billion and $1.3 billion funds, is expected to hit the primary market in the week beginning April 7.

The company has appointed six merchant bankers and the red-herring prospectus was expected to be submitted to the Securities and Exchange Board of India on Monday. Reliance Industries executives declined to comment on the issue.

The IPO proceeds will be used to part finance the company's $6-billion project at Jamnagar. The company has an equity base of over $2 billion and has recently concluded a syndicated $1.5-billion (approximately Rs6,750 crore) borrowing deal.

Reliance Petroleum is setting up a new refinery with an annual capacity of 27 million tonnes (580,000 barrels per day) and a 0.9-million-tonne polypropylene complex.

On a stand-alone basis, the refinery is the sixth largest in the world and together with Reliance Industries' existing 33-million-tonne refinery at Jamnagar, it will be the largest concentration of refinery assets at a single location globally.

The merchant bankers for the issue are DSP Merrill Lynch, JM Morgan Stanley, Enam Securities, ICICI Securities, Citi and SBI Caps. The Reliance Industries spokesperson was not available for comments.

Reliance Industries' holding in Reliance Petroleum will go down to 80 per cent, after the issue.

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