US-based fund Interups in talks for Air India bid: Report

United States-based fund Interups Incorporated is expected to put forward its bid for troubled national carrier Air India (AI) soon.

Interups’ bid includes an Infrastructure Investment Trust (InvIT) structure that will subsume the airline’s revenue generating arms – separated from core operations – to encourage participation from institutional investors, Business Standard reported.

It has already completed its valuation of Air India and has initiated talks with Indian banks and investors for a joint bid through the InvIT route, it added.

The development is significant and may come as a “pleasant surprise to the Indian government”, as previous frontrunner Tata is now dealing with a $20 billion buyout of the Mistry family’s 18.37 percent stake in Tata Sons and fundraising problems with foreign airline partners in its aviation joint venture Vistara, a source told the paper.

Moneycontrol could not independently verify the report.

Air India’s divestment has seen a revolving door of suitors. Among these, the Hindujas backed out citing issues from the COVID-19 pandemic, while AI’s domestic competitor and current number one IndiGo also evinced interest and then did a U-turn.

The last date for submission of Expressions of Interest (EoI) is October 30.