Akasa Air plans to raise $75-100 Million through new equity sale

15 Jun 2023 , 12:20 PM

 According to news reports, Akasa Air, the newest airline in India and one supported by the late billionaire Rakesh Jhunjhunwala, aims to raise $75 to $100 million by issuing new shares to grow its operations.

The airline will use the money to pay for aircraft before they are delivered. Akasa ordered 72 Boeing 737 Max aircraft, of which 19 have already been delivered.

According to the reports, Akasa Air has contacted high-net-worth individuals and PE companies as potential investors for fundraising. The airline is valued at $650 million for the purposes of the capital infusion.

The shares may be purchased by US-based hedge fund PAR Capital Management, which presently owns around 6% of the airline.

The Jhunjhunwala family, which owns approximately 46% of the airline through a trust, is likely to lose some of its holdings as a result of the financing. The trust will continue to be the largest shareholder, despite it being impossible to assess the probable degree of the dilution.

The airline has a fleet of 19 aircraft, and its market share is 4%. Before the end of the year, the airline hopes to place a triple-digit aircraft order, according to CEO Vinay Dube who talked to ET.

The report claimed that Akasa’s search for investors has become more serious in recent months.

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