• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, April 10 The stock of Global Vectra Helicorp jumped by 20 per cent to close at Rs 85.95 on Thursday, triggered by a remark from its Chairman that the company might go for a rights issue by December 2008.

The Chairman, Lt. Gen. (Retd) S.J.S. Saighal, speaking at a news conference on Thursday, said a rights issue was one of the funding options being planned for the offshore air logistics company’s helicopter fleet expansion.

However, after market hours, at 4.30 p.m., the company issued a clarification to the BSE on the time frame for the issue; “… there are absolutely no firm plans on the rights issue by December 2008,” said the company statement.

The company would look at a capex of $65 million for 2008-09 to expand its fleet, said Lt Gen Saighal, at the news conference earlier in the day.

The company currently has a fleet of 24 helicopters and with planned expansions, this number will reach 28 by December 2008. Internal accruals would contribute 10 to 15 per cent of the required capital, with financial institutions funding the rest, he said.

Beyond 2009, the company’s fleet would go up to 36 as it plans to acquire more helicopters. Delivery in all these new orders placed will take place between 2010 and 2012, he said. The company will fund these helicopter acquisitions through the rights issue, he added.

Diversifying into onshore activities, the company is looking at the corporate chartering business, offering service for geophysical surveys and promotion of heli-tourism in hill stations like Jammu & Kashmir and Uttarakhand.

“We are close to finalising a charter contract with a leading corporation, and expect to kick-start our focused onshore operations with it,” said Mr Saighal.

The company so far provided onshore services on a one-off basis. “We will now offer last-mile connection. We will establish some nodes in South India from where onshore aircraft will operate. Some of these nodes will be only for religious tourism,” the Chief Executive Officer, Mr Allan Brown, said.

As the capacity gets augmented, Mr Saighal said that the company’s revenue from onshore operations, beyond 2009, would be 25 per cent, with the rest coming from offshore operatiosn.

Global Vectra is currently serving offshore companies like Oil and Natural Gas Corporation, Reliance Industries, Gujarat State Petroleum Corporation and others. Mr Saighal said that the company would also be commencing services for major oil companies outside India as part of its strategy to get into bigger markets.

More Stories on : Stocks | Rights Issue | Airlines

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Corporate developments

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line