Air India bid – India Chron https://indiachron.com Fri, 16 Jul 2021 09:02:05 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://indiachron.com/wp-content/uploads/2026/02/favicon-4-150x150.png Air India bid – India Chron https://indiachron.com 32 32 SpiceJet promoter Ajay Singh readies $1 billion war chest for Air India bid https://indiachron.com/business/spicejet-promoter-ajay-singh-readies-1-billion-war-chest-for-air-india-bid/ Fri, 16 Jul 2021 09:02:05 +0000 https://indiachron.com/spicejet-promoter-ajay-singh-readies-1-billion-war-chest-for-air-india-bid SpiceJet promoter Ajay Singh is arranging a $1 billion war chest for his Air India bid. The bid will be made through a special purpose vehicle (SPV) which is likely to see investments from two US-based funds. Singh will reportedly hold a minimum of 26 percent shareholding in the SPV, while the US funds are likely to contribute around $ 700 million to it.

Singh will use a combination of his share in the company as well as equity allocated to him as part of the planned hive-off of SpiceJet’s cargo business as security. He aims to raise about $ million from that equity, as mentioned in a report in The Economic Times. He might offload part of his stake at SpiceJet’s cargo unit once the unit is listed.

This will be Singh’s personal contribution to the SPV that will bid for the government’s entire shareholding in the airline.

People in the know informed the daily that the plans are still fluid and the final agreement might see some changes.

The budget airline informed stock exchanges on June 30 that it plans to turn its cargo business into a separate entity, subjected to shareholder approval.

Meanwhile, the government has set a deadline for August third week for the submission of financial bids for Air India.

 

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