Akasa Air is looking to raise $75-100 million by offering fresh shares to expand its business and to make pre-delivery payments for aircraft, sources claim. Akasa Air has 72 Boeing 737 MAX on order out of which 19 have been delivered.
In an attempt to raise the funds, the airline will dilute 46% stake of the Jhunjhunwala family. Interestingly in spite of the potential dilute, the family will remain its largest shareholder.
"The trust is unlikely to participate in this round of funding but even after the dilution will retain a substantial stake. The aviation sector is on a boom and the value of Akasa with strong financials and led by professionals will only rise," an Economic Times report quoted a source.
The airline has reached out to potential investors, including PE firms and high-net-worth individuals, for raising capital. Any infusion of capital will be based on a $650-million valuation.
PAR Capital Management, US-based hedge fund is one of the names doing the rounds and may subscribe to the shares to add to its existing 6% stake in the airline. A source said the Jhunjhunwala family has the right of first refusal on any equity fundraising the airline plans.
Meanwhile a spokesperson for Akasa Air called this speculation and refused to comment.