Ripples advisory, With debt at Rs 487 bn, govt invites bids for 76% stake sale in Air India
Bidders have been asked to submit expressions of interest by May 14
The government will divest 76 per cent stake in Air India, according to the information memorandum on the airline’s proposed stake sale released on Wednesday. The sale will include Air India's shareholding in low-cost Air India Express and its joint venture ground handling subsidiary AISATS.
Bidders must have a minimum net worth of Rs 50 billion and net profit for three preceding years. However, the rule has been relaxed for Indian carriers to enable them to participate in the bid process. A domestic carrier, which is part of a consortium, does not need to fulfill the three-year profitability criteria if its shareholding in the consortium does not exceed 51 per cent. Similarly a domestic airline with a negative net worth can also apply as a part of the consortium, provided its stake is restricted to 51 per cent.
Bidders have been asked to submit expressions of interest by May 14.
As on March 31, 2017, Air India had a standalone debt of over Rs 487 billion and contingent liabilities of over Rs 30 billion.
The carrier reported a net loss of Rs 57.6 billion in the same period.
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