Stocks News

SpiceJet Chairman all set to acquire Air India

According to reports, SpiceJet Chairman and Managing Director Ajay Singh plans to take over the beleaguered Air India.

He, along with two other investors has shown keen interest in receiving a 100 percent stake.

Further, the government has invited bids for 100 percent of its equity as Air India is debt-ridden with debt exceeding Rs.23,000 crore.

This is after the government shifted its working capital debt to a state-owned special purpose vehicle called AI Asset Holdings Ltd.

Air India is set to make a record loss of Rs.10,000 crore in this financial year.

The government had earlier claimed to receive multiple expressions of interest.

Moreover, the objective of the bids was to invite more investors and increase the number of interested parties.

Also, only those buyers would qualify for the later stage, who are serious enough to submit their bids.

Currently, the government is planning to conduct another bidding session to sell Air India.

This is as a result of the failure of the first one in 2018 due to a lack of bidders.

The expression of interest submission deadline was deferred several times during 2020 because of the Covid-19 pandemic.

Civil Aviation Minister Hardeep Singh Puri had earlier stated that the airline would be forced to shut if not privatised.

Besides other interested parties, Tata Group has also shown interest in the bid so far.

The group may bid for Air India through its low-fare airline company AirAsia India and is considered to be the frontrunner.

Kolkata-based businessman Pawan Ruia too has expressed interest in bidding for the national carrier.

Check all the recent news updates and share market updates


Get 90% Discount on Brokerage Now! Open Demat Account