A senior government official said that Tata, the salt-to-software giant, has won the bid to purchase debt-ridden state-run Air India, offering Rs 18,000 crore for a 100% stake.
Tuhin Kanta Pandey, secretary to the Agency of Investment and Public Asset Management (DIPAM), the government department in charge of privatisation, said an SPV of Tata Sons, the conglomerate’s holding company, had emerged as the victorious bidder.
Tata Sons outbid SpiceJet’s founder to acquire Air India.
According to the DIPAM secretary, Tatas’ Rs 18,000 crore proposal includes taking over 15,300 crores of debt and paying the remainder in cash. According to DIPAM Secretary, the government would receive Rs 2,700 crore in cash from Tatas to sell its 100 percent share. According to the official, the winning bid of Rs 18,000 crore by Tata Sons for Air India was more than the government’s reserve price of Rs 12,906 crore. According to Pandey, the transaction is scheduled to conclude by the end of December 2021.
