Public offering from NACIL likely in Q1 2008

New Delhi: The newly-formed holding company for Air India and Indian, the National Aviation Company of India (Nacil), is planning to tap the markets with an initial public offering (IPO) in the range of Rs2,000-2,,500 crore sometime in the first quarter of 2008.

Through the IPO, the company expects to offload 10 per cent of its stake in order to fund its expansion plans. The offer could involve issue of fresh shares and dilution in existing equity of Nacil.

According to sources, the exact stake that will be put on offer would only be known once the two consultants, Accenture and Ambit Finance, were through with the valuation of the company. Sources said that the two consultants are now estimating the valuation of the total group. Their report is expected by the month-end.

Accenture and Ambit had been appointed to handle the merger of Air India and Indian Airlines.