Friday, January 7 2005 19:49 Hrs (IST) - World Time -

Mumbai: The country's leading private airline, Jet Airways is to offer 20 per cent of full-diluted equity capital through a multi-crore Initial Public Offering (IPO).

The offer, through 100 per cent book building route, would be for 1.72 crore shares of Rs 10 each comprising a fresh issue of 1.42 crore shares and offer for sale of 30.21 lakh shares or 4.2 per cent stake held by Isle of Mann registered Tail Winds Ltd, one of the promoting entities, Jet said in its draft red herring prospectus filed with the Securities and Exchange Board of India (SEBI).

The Naresh Goyal-promoted airline has set aside 12 lakh shares for its employees.

Sixty per cent of the issue would be offered to Qualified Institutional Buyers (QIBs). Further 15 per cent would be available for allotment to non-institutional bidders (high net worth individuals) and balance 25 per cent to retail individual investors.

The purpose of the IPO is to gain benefits of listing like enhancing visibility and brand name, raise capital and retire certain outstanding debt of IFC and IDFC, it said.

Jet also intends to invest $ 100 million towards a second flight simulator, maintenance hangar and additional spare engines, ground handling equipment and an integrated training centre.

The airline, which has been permitted to fly to foreign destinations following Government decision last month, presently with a fleet of 43 aircraft has over 40 per cent market share of traffic.