‘Maharaja’ Gets A New Owner As Tata Sons Win Bid For Air India
Tata wins bid for Rs 18,000 crore, beats SpiceJet's Ajay Singh’s offer of Rs 15,100 crore
Air India will be back in the kitty of Tata Group after almost seven decades flying as the national carrier. Department of Investment and Public Asset Management (DIPAM), Secretary, Tuhin Kanta Pandey announced today. Tata Sons will pay Rs 18,000 crore for the National Carrier, outbidding the consortium led by SpiceJet’s Ajay Singh which had bid Rs 15,100 crore. The transaction is expected to be closed by end of December this year.
Many previous governments had to sell the ailing National Carrier for years together by this time around, success goes to the Modi-led NDA government. money guzzling airline but to no avail. Air India has a fleet of 127 aircraft, controlling 50.64% of the International market share when clubbed with AIXL, among Indian carriers. Air India currently serves 42 international destinations. The government is selling its entire stake in Air India. Tata Group already owns about 84% stake in AirAsia India and 51% in Vistara.
The transaction does not include non-core assets including land and building, valued at Rs 14,718 crore, which are to be transferred to Gol‘s AIAHL
Dateline of Events
a) In-principle approval for 100 percent strategic disinvestment in July 2017
b) First round (PIM issued in March 2018) did not elicit any interest
c) Second (present) round started with issue of PIM on 27 January 2020
d) Multiple (seven) expressions of Interest received by December 14, 2020
e) Five bidders disqualiﬁed, as they did not meet requirements of PIM (March 2021)
f) In second stage, ﬁnancial bids received on 15 September 2021 from both qualiﬁed bidders in a sealed cover