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Financial bids for Air India may open tomorrow

Tata Sons, the holding company of India's largest conglomerate, is among those who have submitted financial bids to acquire loss-making state airline Air India.

September 29, 2021 / 09:19 PM IST
On September 25, Union Civil Aviation Minister Jyotiraditya Scindia said the privatisation process of Air India was underway and the technical bids were being analysed before the financial bids are opened.

On September 25, Union Civil Aviation Minister Jyotiraditya Scindia said the privatisation process of Air India was underway and the technical bids were being analysed before the financial bids are opened.

The government of India is working towards announcing a winning bid for Air India by October 15, reported CNBC TV-18 citing sources. The financial bid for the national carrier is likely to be opened on September 29, said the report.

According to the report, 85 percent of the bid price will be for Air India's debt, while 15 percent will be in cash.

Multiple financial bids have been received for the airline, according to a PTI report. Tata Sons, the holding company of India's largest conglomerate, and SpiceJet chief Ajay Singh are among those who have submitted financial bids to acquire loss-making state airline Air India.

RBSA Advisors and EY will make a presentation on Air India valuation at 5 pm on September 28.

Also read | IndiGo, SpiceJet go head to head, who can fly higher?

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On September 25, Union Civil Aviation Minister Jyotiraditya Scindia said the privatisation process of Air India was underway and the technical bids were being analysed before the financial bids are opened.

He, however, refused to elaborate on the number of bids received for the debt-laden national carrier. "We have received technical bids and financial bids which are in sealed envelopes. Currently, the technical bids are being scrutinised. Financial bids will be opened only after scrutiny of technical bids," the Civil Aviation Minister told reporters in Srinagar.

He said the process of privatisation is on and it will reach its culmination.

The financial bids will be evaluated against an undisclosed reserve price and the bid offering the highest price above that benchmark would be accepted. The bid will be initially examined by the transaction advisor before the recommendation is sent to the Cabinet for approval.

(With inputs from PTI)
Moneycontrol News
first published: Sep 28, 2021 12:16 pm

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