The Mumbai-based conglomerate Tata Sons has emerged as the winner in the Air India bidding at ₹18,000 crores and will be taking over the debt-laden airline.
“Talace has quoted an enterprise value of ₹18,000 crore. Of this ₹15,300 is towards debt component of Air India, and the remaining will be cash paid to the government,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said at a press briefing.
Sharing the details, DIPAM Secretary stated that the total Air India debt as of August 31, 2021, was Rs 61,562 crores. The winning bidder takes on ₹15,300 crores, and the balance of Rs 45,263 crore will be repaid by the government to the lenders.
The deal includes a 100% stake in Air India and low-fare unit Air India Express and a 50% holding in ground-handling company Air India SATS Airport Services Private Limited (AISATS).
The second highest bidder was a consortium led by SpiceJet’s Ajay Singh, which cited an enterprise value of ₹15,100 crores.
For Tata Group, Air India adds a third airline brand to its stable, considering the conglomerate already holds a majority interest in AirAsia India and Vistara.
Minutes after regaining control of the airline, Tata Sons Chairman Emeritus Ratan Tata thanked the union government for its recent policy of opening up select industries to the private sector. Taking on to his Twitter handle, he said, “Welcome back, Air India.”
“On an emotional note, Air India, under the leadership of Mr JRD Tata had, at one time, gained the reputation of being one of the most prestigious airlines in the world. Tatas will have the opportunity of regaining the image and reputation it enjoyed in earlier years. Mr JRD Tata would have been overjoyed if he was in our midst today,” Tata said in his tweet statement.
