To give a fillip to its working capital requirements, Kingfisher Airlines last week signed a term sheet with a private equity fund for a medium-term investment in the company.
Press Trust of India (PTI) has reported that the amount being targeted by the airline is around Rs 2,000 crore, the
company, however declined to comment on the same.
According to a company source, the fund will be raised over the next couple of months and will take care of various working capital needs of the company like day-to-day operations, lease rentals and fuel needs. Kingfisher Airlines does not have any major delivery of carrier this year and hence funds are not required for that, said the source.
Declining to comment on the same the spokesperson of the UB Group said, “It is not our policy to comment on issues that are price sensitive. Vijay Mallya has already stated that we have signed a term sheet with a PE firm and we are unable to comment or elaborate beyond that.”
The company, however, declined that it would be a stake sale or a strategic investment and confirmed that a term sheet has been signed to raise funds from a PE fund.
Mallya had recently said that he would rather raise funds through equity than debts. “I am talking of raising equity. I have not talked about additional borrowing,” he had said.