Published on Tue, Dec 04, 2007 at 17:08 | Source : Moneycontrol.com
Updated at Wed, Dec 05, 2007 at 08:57
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Praful Patel says Air India IPO likely in 2H 2008
Air India IPO is likely in second half of 2008. Government may divest 10-15% in Air India via IPO. IPO may include 4-5% ESOPs. There will be no FDI in Indian aviation, until carriers acquire scale. There is a need to ensure level playing field for Indian carriers.
Aviation Minister, Praful Patel said that Air India IPO is likely in second half of 2008, reports CNBC-TV18. Increase in fuel prices is the affecting aviation sector, he added.
They are seeking lower sales tax on aviation turbine fuel. He added that there will be no FDI in Indian aviation, until carriers acquire scale. There is a need to ensure level playing field for Indian carriers. Government may divest 10-15% in Air India via IPO. Air India IPO may include 4-5% ESOPs. In the long-term, FDI cap in aviation has to go.
Civil Aviation Minister Praful Patel has said that the government intends to offload about 10-15% stake in Air India post the merger, out of which 4-5% will be reserved for the employees.
Patel says this will not only help infuse much needed capital into the carrier, but will also unlock significant value.
"Air India, post merger will eventually see an IPO coming up in due course. We have said that we would like to have 10-15% disinvestment from the current ownership, so that we will be able to broadbased. The employees will also be party to the entire development and the higher valuation, which market capitalisation will bring to the company.
