Tata Sons Air India Share Price : Tata Sons has prepared a big plan to get the country’s big airline Air India out of expensive debt. Let us tell you that Tata Sons has planned to raise $ 4 billion to pay off all types of debt of Air India.
money will be raised from equity
According to sources, Tata Sons will raise funds through equity and hybrid debt. The company had taken a very expensive loan for the acquisition of Air India. Now she wants to repay it and at the same time she wants to infuse new capital to strengthen Air India.
Equity fund came down
Let us tell you that Air India was acquired by Tata Sons in October 2021. The agreement was signed by Tata Sons at an enterprise value of $2.3 billion. Sources say that while raising capital will be easier for the company, the equity component may take time. The number of equity funds investing in the airline business is less.
investment advisor will be appointed
It is known that Tata Group will soon start the process of appointment of Investment Advisors. The company has started talks with some foreign lenders and some private equity funds. Debt refinancing portion will become relatively easy. The donors who come under the existing banking relationship of Tata will be involved in this.
Provision of Rs 2,600 crore
According to the second report last month, AirAsia India may make a provision of Rs 2,600 crore for the total loss of the airlines. In June this year, the Competition Commission of India (CCI) approved Air India’s proposal to acquire equity shares of Air Asia India.
Air India share
According to the latest data, Air India’s share in the domestic market had come down to 10.2 per cent in January 2021. It was 11.6 per cent in January 2020. Air India’s market share further declined to 8.4 per cent in July 2022. Two other Tata group airlines, Vistara and Air Asia, had a market share of 10.4 per cent and 4.6 per cent, respectively.