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Tata Sons wins bid for acquiring Air India at Rs 18,000 crore

'Welcome back Air India,' tweets Ratan Tata

By Jasleen Kaur -- October 08, 2021 4:26 pm -- Updated:October 08, 2021 7:15 pm
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PTC News Digital Team

Tata Sons has emerged as the top bidder for the takeover of debt-laden state-run airline Air India at Rs 18,000 crore, said Tuhin Kanta Pandey, secretary to the Department of Investment and Public Asset Management (DIPAM) on Friday. Group's chairman emeritus Ratan Tata tweeted a vintage photograph of the company's former chairman JRD Tata stepping down from an Air India flight.

The bid got approved by a group of ministers headed by Home Minister Amit Shah on October 4, said Tuhin Kanta Pandey.

ghar-wapasi of air india an emotional moment for ratan tata as tata sons wins bid : झोली में एयर इंडिया! पिता की यह तस्वीर देख आज भावुक तो बहुत होंगे रतन टाटा -

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"The Tata Group winning the bid for Air India is great news! While admittedly it will take considerable effort to rebuild Air India. It will hopefully provide a very strong market opportunity to the Tata Group's presence in the aviation industry," said Ratan Tata in a press statement.
"On an emotional note, Air India under the leadership of JRD Tata had at one time gained the reputation of being one of the most prestigious airlines in the world. Tatas will have the opportunity of regaining the image and reputation it enjoyed in earlier years. JRD Tata would have been overjoyed if he was in our midst today. We also need to recognise and thank the government for its recent policy of opening select industries to the private sector. Welcome Back Air India!" he added.

The transaction would be completed by December 2021, said Tuhin Kanta Pandey. The bid was filed by Tata Sons wholly-owned subsidiary Talace Pvt Ltd. Tata Sons were up against Spicejet promoter Ajay Singh-led consortium, who had bid Rs 15,100 crore. The total debt of Air India as of August 31 stands at Rs 61,562 crore.

Air India sold to Tata Sons as it emerges as the highest bidder

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Air India's reserve price was fixed after the bids were called to ensure that the bidders do not get to know about the reserve price prior to their bidding. It ensured utmost confidentiality when it comes to the reserve price.

Tata Sons Wins Bid For Air India, Official Announcement Awaited

The government will divest its 100 per cent stake in Air India, Air India Express and 50 per cent stake in ground handling company AISATS.

-PTC News With inputs from ANI

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