India's Royal Airways to restart flights and raise INR300m in securities sale

Airline Industry Information, Nov 17, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Indian airline Royal Airways has announced that it is to hold an Extraordinary General Meeting on 6 December 2004 as it looks to raise INR300m with a securities sale.

The airline has been grounded for the past eight years but the US-based company Royal Holdings Services said that it would be spending USD35m to get flights restarted. The move to sell securities comes after the Indian government lifted the amount of foreign investment allowed in Indian airlines from 40% to 49%.

Royal Airways said that it would be issuing 30m equity shares and warrants of INR10 each on a preferential/private placement basis with the airline's promoters, directors and key management not subscribing to the offer. The airline is also looking to its shareholders for permission to raise its equity capital from INR2.5bn to INR3.25bn, reports India InfoLine News.

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