Kotak India Growth Fund picks up a stake in Paramount Airways
Kotak India Growth Fund (KIGF) has announced that they are picking up a 10 per stake in the nascent domestic private carrier Paramount Airways. The private equity fund entity would be paying around USD 15 million for this minor stake in this young airline company. Sources say that the group has transferred the money to the airline company and the deal is close to be completed.
KIGF is said to have received fresh shares at an undisclosed premium and this deal means that the Paramount Airways has been valued at around USD 150 million. Paramount is currently looking for more sources of revenues to expand its operations in the Indian aviation market, which is growing at a phenomenal rate ever since Air Deccan arrived and launched the price war.
Paramount Airways is currently operating a total of eight flights daily from Coimbatore to Kochi, New Delhi, and Chennai. The promoters of the airline company have invested in around Rs. 600 crores for acquiring five Brazilian-made Embraer Jets and they have already received the delivery of one of these planes. The second one is expected to join the fleet sometime next month.