Akasa Air plans to raise up to $400 mn

Jhunjhunwala family may not buy more shares, diluting stake

- Anirudh Laskar

Akasa Air, India’s newest airline, is considering raising as much as $400 million, valuing the carrier at $1 billion, two people familiar with the development said.

However, this could lead to a dilution of the stake held by the family of late billionaire investor Rakesh Jhunjhunwala, they said.

“The fundraising will be done in multiple tranches, with an increasing valuation of up to $1 billion from around $650 million now. The Jhunjhunwala family is unlikely to buy any additional shares in the planned fresh equity issuances, which may dilute their holding," one of the two people said on condition of anonymity.

The banker appointed for the process may also look for a suitable buyer for a secondary stake sale by the Jhunjhunwala family, which owns 45.97% of Akasa Air.