Mallya to raise $600m equity

Kingfisher Airlines chairman, Mr Vijay Mallya, said on Monday that the company is looking to raise $600 million to pay off its debts.

He said that the company has taken shareholders approval for raising $100 million through rights issue and $100 million through the global depository receipts (GDRs).

Besides these, the company is also in advance discussions with the private equity investors to raise $400 million. “As things are getting better hopefully the valuations will also get better. We are not dependent on just one initiative,” said Mr Mallya on the sidelines of the India Economic Summit here.

He said that the money raised will be used for the airline and also on the reduction of its debts.

Mr Mallya asked the government to review the various tax burdens on the industry.

He said that the aviation industry in India faces two fundamental problems, one is high tax on crude and the other is fuel prices.