Deccan Aviation close to $75-$100 million fund-raising deal, say reports

Air Deccan may dilute 25 per cent of equity to raise this money. With a fleet size of 43 aircraft and about 60 aircraft on order it has about 21 per cent of the Indian aviation market.

Reports, meanwhile, said the Anil Dhirubhai Ambani group is eying a 26 per cent stake in Deccan Aviation.

Sources said Air Deccan was very keen on finding an investor having a close alignment of vision with the airline on the way ahead. The airline was also very keen to spin off various divisions like cargo, MRO (maintenance and overhaul organisation) and a helicopter charter unit into separate companies. These would eventually be spun off to unlock value for the company.

"What we are trying to see is what kind of money people are willing to invest and under what kind of conditions," a report quoted Deccan''s managing director G.R. Gopinath as saying.

"Edelweiss has to give the final list of short listed funds, which should happen within ten days," an earlier report quoted him as saying.

Edelweiss, which is handling the deal, said "The transaction is on and we are drawing up the list, but I can''t disclose anything more at the moment."