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Global Vectra to buy 17 choppers

June 16, 2006 12:26 IST

Delhi-based offshore logistics company Global Vectra Helicorp plans to acquire 17 helicopters and will set up maintenance, repair and overhaul at Juhu in Mumbai.

The company is involved in transporting crew and cargo of oil and gas companies to offshore oil platforms located approximately 50 to 100 nautical miles from the coastlines of India.

The company is currently operating with 12 helicopters and plans to increase its fleet to 29 by the end of fiscal 2009. Till now Global Vectra had operated only the Bell 412 helicopter model for medium range operations.

In order to facilitate deep water exploration, the company is planning to introduce technologically advanced Eurocopter EC 155B1 long range helicopter to its fleet, according to Draft Red Herring Prospectus of the company.

Global Vectra recently filed its DRHP with the Securities and Exchange Board of India to enter the capital market with its proposed initial public offer.

A part of IPO proceeds would be used for acquiring four Bell 412s helicopters and two EC 155B1 helicopters with an estimated cost of Rs 211.96 crore (Rs 2.11 billion).

The company also plans to develop and strengthen its MRO and support capabilities. This would be achieved partly through setting up of an avionics shop at the Juhu aerodrome facility in Mumbai and subsequently would construct a hangar on the eastern coast of India.

Global Vectra has already received the approval of land at Juhu from Airports Authority of India and the proposed hangar will be completed by the end of fiscal 2007.

The facilities at these hangars will provide support for the current as well as the planned fleet expansion deployed on both sides of the sub-continent. To add, the company is in the process of adding to pilot and engineer strength to cater to expanding fleet.

The company proposes to enter the capital market with an offer of 3,500,000 equity shares of Rs 10 each for cash at a premium to be decided through the book-building process to be conducted on the Bombay Stock Exchange and National Stock Exchange.

Of the total offer, the company will be issuing 2,80,000 fresh equity shares and the balance 7,00,000 equity shares are on offer for sale by an existing investor, Azal Azerbaijan Aviation Limited. The issue constitutes 25 per cent of the fully diluted post issue equity capital.

The Book Running Lead Managers to the issue are SBI Capital Markets Ltd and ICICI Securities Limited.

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P R Sanjai in Mumbai
Source: source