Ripples Advisory, Centre may completely exit Air India, sell its residual stake to LIC

According to preliminary information memorandum, Air India's new owner will be asked to list the company in some time

The Centre may completely exit Air India by selling its residual stake to Life Insurance Corporation of India (LIC) and other financial institutions, according to government sources. This move would help address investors’ concerns related to possible interference in the airline’s operation.

As part of the privatisation process, the government has decided to disinvest 76 per cent equity stake in Air India Limited, along with Air India’s 100 per cent holding in its subsidiary, Air India Express Limited, as well as 50 per cent in ground handling joint venture AISATS.

A senior official aware of the government’s plans told Business Standard discussions are about to start with LIC and other state-owned insurance companies for selling the government’s remaining stake in Air India after employee stock ownership plans (ESOPs) are given out to the permanent employees.

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