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Bidding For Air India To Be Done On Enterprise Value, Says Hardeep Singh Puri

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Civil Aviation Minister Hardeep Singh Puri on Thursday mentioned bidding for Air India could be performed on the premise of its enterprise worth as a substitute of fairness worth.

Enterprise worth of an organization contains the fairness worth, debt in addition to money with the corporate. Equity worth measures the worth of an organization’s shares.

“We have decided to ask for bids for Air India on enterprise value,” Mr Puri mentioned at a press convention.

Aviation Secretary Pradeep Singh Kharola mentioned on the convention, “The bid will be on the enterprise value… In this enterprise value also, a ratio has been earmarked between how much he (bidder) can take as debt and how much he has to give as cash.”

It has been determined that no matter enterprise worth the bidder quotes, 15 per cent of that needs to be given in money to the federal government and remaining 85 per cent needs to be taken as debt together with Air India, Mr Kharola defined.

The debt of Air India as on March 31, 2019 was Rs 58,255 crore. Later in 2019, Rs 29,464 crore of this debt was transferred from Air India to a government-owned particular objective car referred to as Air India Assets Holding Company Limited (AIAHL).

After its unsuccessful try and promote Air India in 2018, the federal government in January this yr restarted the divestment course of and invited bids for promoting 100 per cent of its fairness within the state-owned airline, together with Air India’s 100 per cent shareholding in Air India Express Ltd and 50 per cent in Air India SATS Airport Services Private Ltd.



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