The company will seek approval at AirAsia India's next board meeting to pick a banker to start the preliminary process for the IPO, Mr Fernandes said on Twitter.
"Analysts (are) giving zero value to AirAsia India. Not far from 20 planes and a potential IPO," Mr Fernandes tweeted.
It's a "very valuable asset with huge growth potential", he said.
($1 = Rs 63.6650)
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.