Rapid growth in India’s air transport market failed to help fast-growing Air Deccan with a much-anticipated initial public offering (IPO), which brought in far less than expected.
The IPO closed in May with the share price set at the low end of expectations, raising Rp3.6 billion ($79 million) and valuing the airline at $316 million. Air Deccan, which launched services in 2003 as India’s first low-fare carrier and which now has a domestic market share estimated at 16%, had been seeking to raise cash through an IPO for some time. It said last year that it was hoping to raise around $250 million to support its continuing expansion.
The carrier’s expectations were lowered however when financial advisers recommended reduced asking prices in the offering. ■
Source: Airline Business
