Tata Sons wins the Air India bid and thus gets back its Maharaja after 68 years! The Government had put a reserve price of INR 12,906 crores, but the Tata Sons quoted INR 18,000 crore ($2.96 billion).
With this bid, the company gets a 100% stake in Air India, its low-cost arm, and Air India Express. The winning bid includes a 50% stake in Air India SATS Airport Services Private Limited.
After the final winner was announced by the DIPAM secretary, Tuhin Kanta Pandey, Ratan Tata took to Twitter and posted a picture welcoming back the long-gone Air India and its mascot Maharaja!
Tata Sons have got back Air India after nearly 70 years, as the airline was nationalised. The debt-laden state-run airline is under a debt of INR 60,000 crores, and the Government was losing around INR 20 crore every day! The salt-to-software conglomerate looks to give fresh air under the airline’s wings!
The win has given Tatas control of around 4,400 domestic and 1,800 international landing and parking slots in the domestic airports. This also includes 900 slots at foreign airports.
As a result of the deal, some of the TATA subsidiaries saw a surge in their stock price today!