GoAir to dilute up to 45% to strategic investors

NEW DELHI: Wadia group-promoted low-cost carrier GoAir is looking at diluting anywhere between 26% and 45% stake to strategic investors. But management control will remain firmly in the hands of the Wadia family, said its MD Jeh Wadia. Though he did not give a timeframe for raising funds for the airline business, he said the company is considering several proposals by FIIs and high net worth individuals for acquiring its stake.

“We have proposals from FIIs, high net worth individuals, merchant bankers and other strategic investors to acquire our stake. We are evaluating these proposals,” Mr Wadia said.

The group would be looking at taking the airline business public in 2008-09. ”But this will be only after we are profitable,” he added. He said the group would only dilute stake on terms keeping financial and strategic interests of the company in mind. “A merchant banker has been appointed to evaluate the proposals,” Mr Wadia told ET.

The airline currently has fleet of five aircraft. The group plans to have 35 aircraft fleet by 2011.The country’s largest low-cost carrier, Air Deccan, is also in the process of inducting a strategic investor into the company, by diluting up to 26% stake.