Bidding for Air India to be done on enterprise value: Hardeep Puri

Enterprise value of a company includes the equity value, debt and cash with the company

Bidding for Air India to be done on enterprise value: Hardeep Puri

Civil Aviation Minister Hardeep Singh Puri addresses a press conference at the National Media Centre in New Delhi on Thursday. PTI

New Delhi, October 29

Civil Aviation Minister Hardeep Singh Puri on Thursday said bidding for Air India would be done on the basis of its enterprise value instead of equity value.

Enterprise value of a company includes the equity value, debt as well as cash with the company. Equity value measures the value of a company's shares.

"We have decided to ask for bids for Air India on enterprise value," Puri said at a press conference.

Aviation Secretary Pradeep Singh Kharola said at the conference, "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 decided that whatever enterprise value the bidder quotes, 15 per cent of that has to be given in cash to the government and remaining 85 per cent has to be taken as debt along with Air India, Kharola explained.

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 special purpose vehicle called Air India Assets Holding Company Limited (AIAHL).

After its unsuccessful attempt to sell Air India in 2018, the government in January this year restarted the divestment process and invited bids for selling 100 per cent of its equity in the state-owned airline, including Air India's 100 per cent shareholding in Air India Express Ltd and 50 per cent in Air India SATS Airport Services Private Ltd. PTI

Top Stories

Punjab farmers continue their march towards Delhi

Punjab farmers continue their march towards Delhi

More farmers under the banner of the Kisan Mazdoor Sangharsh...

Despite facing teargas, farmer helps cop drink water; netizens all praise for it as video goes viral

Despite facing teargas, farmer helps cop drink water; netizens all praise for it as video goes viral

Farmers stepped forward to extend a helping hand to others, ...

Cities

View All