BOMBAY,February 09, 2005
The Indian Express
MUMBAI, FEBRUARY 8: Tail Winds, registered in offshore
tax haven Isle of Mann and fully-owned by non-resident
Indian Naresh Goyal, will be worth a whopping Rs 7,770
crore (US $1.76 billion) if the initial public offering
(IPO) of Jet Airways Ltd succeeds in mobilising the
targeted amount.
Jet Airways today fixed the price band for its book
built IPO at between Rs 950-Rs 1,125 per Rs 10-share.
If all goes according to plan, Jet Airways will have
a market capitalisation of between Rs 8,201 crore
and 9,712 crore after the IPO.
As Tail Winds Ltd will own 80 per cent of Jet’s
equity capital after the IPO, Goyal’s stake will
be worth Rs 7,770 crore if the IPO is finally priced
at the upper band. If the pricing is at Rs 950 per
share, the stake will be worth Rs 6,560 crore.
If the IPO succeeds, Goyal will rank among India’s
top-ten wealthiest businesspersons. After listing,
Jet will be among the top 50 in market-cap ranking.
At this price band, the company is targeting to raise
between Rs 1,634 crore to Rs 1,935 crore. The issue,
which opens on February 18, will close on Feburary
24. The prospectus was filed with Registrar of Companies
today. The airline plans to launch its road shows
in Mumbai on Friday.
The Securities and Exchange Board of India had last
week cleared the IPO with some observations.
The offer, through 100 per cent book building route,
would be for 1.72 crore shares of Rs 10 each comprising
a fresh issue of 1.42 crore shares and offer for sale
of 30.21 lakh shares or 4.2 per cent stake held by
Tail Winds Ltd.
Tail Winds is 100 per cent owned by Naresh Goyal
and has a revenue of only Rs 61,000 in fiscal 2004.
As much as 60 per cent of the issue would be offered
to qualified institutional buyers (QIBs). Further
15 per cent would be available for allotment to non-institutional
bidders (high net-worth individuals) and balance 25
per cent to retail individual investors.
The purpose of the IPO is to gain benefits of listing
like enhancing visibility and brand name, raise capital
and retire certain outstanding debt of IFC and IDFC.
According to the company — which made its financials
public for the first time in its prospectus —
it has made a profit of Rs 127 crore in the first
six months of the current fiscal on a revenue of Rs
1,680 crore. This was as against a massive loss of
Rs 244 crore made in fiscal 2003.
The airline has a fleet size of 42 aircraft of which
34 are Boeing 737s, while eight aircraft are ATR 72-500s.
