Lo and Behold! It seems Air India might finally be getting privatised after all in the next few months, or maybe a year. The airline, which has been on the block from the Government of India’s side for a while, did not evoke a response from any potential bidders when they were offering a 74% stake in the airline to suitors back in 2018. This time around, on offer is a 100% stake in Air India, Air India Express, and the 50% stake of Air India in AI Sats, the ground handling company of Air India.

Air India evinces investor interest.

September 15, 2021, was the last day for anyone interested in buying Air India to have filed a financial bid for the airline. Various media reports over the weeks have reported about how a whole bunch of advisors to the Tata Sons have been closely performing a due-diligence on multiple aspects of Air India over the past few months, going over a fine-tooth comb over every detail. There have also been details emerging how SpiceJet promoter Ajay Singh has been lining up a bid for Air India, in his personal capacity, with the support of a couple of special situation funds.

The fact that the airline divestment has received interest has been confirmed by the Secretary, Department of Investment and Public Asset Management, publicly via a Tweet today,

Financial bids for Air India disinvestment received by Transaction Adviser. Process now moves to concluding stage. pic.twitter.com/0NxCJxX5Q1

— Secretary, DIPAM (@SecyDIPAM) September 15, 2021

Ernst & Young is the Transaction Advisor to the Government of India for this mandate. While the names of the bidders have not been revealed by the Government of India, per media reports, it has been confirmed by Tata House they have submitted a bid. Also, as per the Mint sources, even Ajay Singh has lined up an offer.

Bottomline

Air India has received financial bids from more than one bidder, taking up the process of selling the airline to a private party into the final lap. Tata Sons and Ajay Singh are the two parties who are the names doing the rounds for having evinced interest.

Who will win Air India eventually? What is your take?

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