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| Volatile market scares BMTC; IPO deferred |
| BS Reporter / Chennai/ Bangalore Aug 04, 2008, 04:36 IST |
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The Bangalore Metropolitan Transport Corporation (BMTC), the public transport operator in Bangalore city, has deferred plans to raise Rs 750 crore through an initial public offering (IPO) citing volatile stock market conditions.
Karnataka minister for transport R Ashok, said, “BMTC’s plan to raise money through capital markets is before the state cabinet and a suitable decision will be taken when the market improves.” He declined to give a time frame.
BMTC, which is a profitable state transport undertaking, plans to raise resources to modernise and strengthen its existing fleet which now number over 4,000.
Earlier, the minister flagged off the ‘Ambaari’ luxury buses, which are operated by the Karnataka State Road Transport Corporation (KSRTC) and said all four transport corporations in the state will be buying 3,500 buses this financial year.
“These luxury buses are targetted at the middle class passengers in the state. Through this KSRTC will link up all district headquarters with Bangalore,” he said.
“Today we are commissioning eight buses and based on the public acceptance, we plan to scale up our operations gradually,” he added. The ‘Ambaari’ range of luxury buses are positioned between Airavat (Volvo buses) and Rajahamsa (ordinary deluxe buses).
Gaurav Gupta, MD, KSRTC explaining the ‘Ambaari’ range of luxury buses, said, “The buses have 44 seats with 2x2 seating configuration and has 160 horse power Cummins engine and comes with a price tag of Rs 36.81 lakh for each bus.”
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