Air India Divestment Has Brought An Exciting Deal For More Bidders And This Is How The Government Has Sweetend The Deal

As per the sources, the bidders will be given an ultimatum to decide the quantum of the death on the books of Air India that they like to observe.

It was announced by Mr healthy Puri on late Thursday that the bidding parameters of Air India divestment are on the verge of revising. Even if it has also decided to ask for the beds at an enterprise value as per the direction of the Civil Aviation Minister.

This significantly portrays that which will now be sorted in terms of debt and equity both.

The flexibility of the widows in terms of debt will now be decided according to the new parameters given in the hands of the bidders. The widows here will have the ultimate option to come along on the quantum of debt that they would like to absorb on the Air India books.

You also mention that he interacted with the members of the fourth estate on Thursday in terms of discussing Air India’s disinvestment. This does lead to a prefixed debt level. Also, the enterprise value of Air India won’t be in this level and will be allowed by the bidders to bid on. With this, the bidders get more leverage in terms of getting participation in the bidding process. This is what has tweeted on Thursdays mentions!

The wedding will be only considered on the equity value as it was earlier mentioned by Preliminary Information Memorandum that is PIM.

On January 27 the government had blocked this National career until the deadline of March 31st as it was set for bidding and later was extended.

It was planned by the government to sell the entire stake in Air India limited that it kept at increasing the mounting losses and debts.

In January and announced that the stake is been put on sale and on an option that a majority stake for most around two years has gone failed to draw any of the bids according to the center.

The entire estimated death was around rupees 69000 crore. And the laws which were put on was around 8556 crore in the FY19. Also in the previous financial year, there was a net loss of rupees 5,348 crores.

The capital structure of the national career as per the experts has come ahead with the new parameters that allow the bidders to decide the same.

Mr. Manish Agarwal the head of the infrastructure advisory at PWC India consultancy, said, ” This should only make sense with existing that would not be transferred and an ample of flexibility will be given to the investors whether to decide what capital structure will be required”.

  • The debt left in the company would be around 23, 286 crore in the current PIM
  • Also decided that it would be the center in January to sell 50% of ground handling unit
  • Detect of around Rs 23026.5 crore along with the liability will be decided depending on the current assets time of the closing of these transactions.
  • 85% of the enterprise value will be written from the debt and in the form of higher cash, the government will consider the purchase of 100% equity share capital of Air India.
  • 50% should be given in cash to the government and 85% should be taken as debt according to the aviation secretary Pradeep Singh Karola
  • The extension of the word has increased up to December 14 which will be the fifth consecutive times in January in the bed has been given in which theatres the ample of time
  • Expression of a hundred percent stake sale of the national career has been increased by two months to October 30.
  • Covid-19 pandemic was the third time the process will begin in January and more than 500 queries were equally received from the bidders that are interested in the process.

On Wednesday this crucial decision was considered by Air India specific alternative mechanism that is AISAM that was headed by the Union Minister Amit Shah along with the finance minister Nirmala Sivaraman and aviation Minister Hardeep Singh Puri also with the indulgence of commerce Minister Piyush Goyal.