GoAir is believed to be mulling over bringing in a new equity partner from among three aspirants, including a leading Indian corporate and a global venture capitalist.
NEW DELHI: GoAir is believed to be mulling over bringing in a new equity partner from among three aspirants, including a leading Indian corporate and a global venture capitalist - a move that would help the Wadias- promoted airline to expand its fleet to 40 aircraft by 2012.
Ahead of advancing the negotiations, the budget carrier has been valued at up to Rs 1,600 crore ($350-400 million) by a leading international consultancy firm.
Asked about the new equity partner and the stage of negotiations, a company spokesperson declined to comment, saying: "As a policy, GoAir does not comment on market speculations."
With the recent round of consolidation in aviation space, such as Jet Airways-Air Sahara and Kingfisher-Deccan deals, GoAir is emerging as an attractive investment target and has received offers from an international venture capital firm, an Indian corporate and another domestic financial investor, people close to the development said.
According to a person familiar with the valuation process, value was arrived after taking into consideration the company's business plans for the next 4-5 years, which includes a major fleet expansion plan.
The Mumbai-based airline is mulling over a new order for 20 airplanes as part of its target for a fleet size of 40 by 2012. Last year, it placed a 20-plane order with Airbus for $1.2 billion, and the next order is expected to be worth about $1.4 billion based on the the catalogue price of $70 million of each Airbus A320 aircraft.
The valuation was done as GoAir wanted to know its current worth and standing in the market, having receiving a number of proposals for an equity stake, the sources said.
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