Salt-to-software conglomerate Tata Group and US-based fund Interups Inc were among “multiple” entities that on Monday put in preliminary bids for purchasing loss-making carrier Air India.
A group of 219 Air India employees submitted an expression of interest (EoI) for the carrier in partnership with Interups at the close of the deadline on Monday.
“Multiple expressions of interest are received for strategic disinvestment of Air India. The Transaction will now move to the second stage,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.
He, however, didn’t reveal either the identity of the bidders or the amount of bids received for purchasing the national carrier.
Sources said Tata Sons, the company of the Tata Group, has put in an EoI then did Interups, whose chairman Laxmi Prasad had within the run-up to the disinvestment made his intentions clear to bid for Air India.
It was not, however, immediately clear if Tatas have bid alone or through its budget airline AirAsia India.
A group of 219 Air India Ltd employees, all contributing a minimum of Rs 1 lakh, hold 51 per cent within the bidding consortium. The remaining 49 per cent is with Interups.
An official said the transaction advisor will inform bidders before Epiphany , if their bids are qualified.
Qualified bidders will then be asked to submit financial bids.
The government is selling its entire 100 per cent stake in Air India that has been in losses ever since its 2007 merger with domestic operator Indian Airlines.
The airline, which started as a mailman in 1932, will provides a successful bidder control of 4,400 domestic and 1,800 international landing and parking slots at domestic airports, also as 900 slots at airports overseas.
Besides, the bidder would also get 100 per cent of the low-cost arm Air India Express and 50 per cent of AISATS, which provides cargo and ground handling services at major Indian airports.
With previous attempts since 2017 failing to urge any significant interest, the govt had this point sweetened the deal by giving freedom to potential suitors to make a decision what proportion of the airline’s debt they need to require on as a part of the transaction.
Previously, the bidders were required to require over the whole Rs 60,074 crore debt.
