AirAsia India plans IPO, to seek approval at its next board meeting

No-frills airline AirAsia India plans to come out with its initial public offer (IPO) and would seek approval at its next board meeting for appointing a banker to start the preliminary process.

The airline is a joint venture between Tatas and Malaysia's AirAsia Berhad commenced operations in June 2013.

AirAsia Group CEO Tony Fernandes on Wednesday said that AirAsia India has plans for an IPO.

"Analysts giving zero value to AirAsia India. Not far from 20 planes and a potential IPO," he said in a tweet.

In the Bengaluru-based AirAsia India, 51 per cent is with Tata Sons while the rest is held by AirAsia Berhad.

"AirAsia will be seeking approval at the next AirAsia India board to pick a banker to start prelim process. Very valuable asset with huge growth potential," Fernandes said in another tweet.

The company has already announced its plans to fly overseas from the second half of this year.

Under Indian regulations, a domestic airline should have at least 20 planes before it can start services to foreign destinations.

Currently, it flies to 16 destinations from its three hubs -- Bengaluru, New Delhi and Kolkata -- and has a fleet of 14 Airbus A320 planes.

AirAsia India narrowed its net loss to Rs 16.4 crore in the September quarter this fiscal as against Rs 62.12 crore suffered in the July-September period of the last fiscal.

On an year-on-year basis, AirAsia India achieved 99 per cent growth on passengers carried as well as a 104 per cent rise in capacity in the quarter under review.

Currently, three Indian carriers are listed on the bourses. They are Jet Airways, SpiceJet and IndiGo's parent InterGlobe Aviation.

In another tweet, Fernandes said AirAsia is in the process of appointing a banker to find a partner for its profitable shared services business, AirAsia Global Shared Services Sdn Bhd (AGSS).