Tata groups, an Indian Multinational conglomerate holding company Headquartered in Mumbai, Maharashtra has emerged as a serious bidder for Air India and is actively seeking Financial partners to join in their bid for the Airline. The group will offer the Financial partner a minority stake in the special purpose vehicle that will bid for the airline. The last date for submitting the expression of Interest (EOI) for Air India is August 31.
Air India said that the Airline has been passing through a critical financial crisis situation from much before the covid-19 onslaught. The disabled effect of the pandemic especially, in the aviation sector has further plummeted the airline’s Finances to a precarious position.
Tata Group also said that the financial investors including US-based private equity funds are keen to partner with Tata for their Experience in running Vistara and AirAsia India. Meanwhile, Bengaluru-based Embassy group, a leading reality firm, is looking to monetize its warehousing and Industrial parks business at an enterprise value of up to Rs.2000 crore ($267 million). Embassy Group led by Jitu Virwani is a Major player in Indian Commercial real-estate. The Group along with Backstone, launched India’s First real-estate Investment Trust (REIT) last year to raise Rs.4750 crore through a public issue.
Tata sons and Singapore Airlines are actively weighing the option to bid for Air India and a decision to submit an expression of Interest could be taken soon. The revenues of Tata Motors and Tata Power were affected in India and other parts of the world due to the outbreak of the covid-19 pandemic. The corona virus Pandemic which was started in China has hit the business and sales of the World’s biggest auto-market and also affected the supply chains affecting car markets in all parts of the world.
The Tata Consumer products limited has reported an 81.78 percent rise in its Net profit at Rs.345.55 crore for June quarter helped by increase in demand is some categories, whereas, Tata motors has posted a consolidated net loss of 8437.99 crores for the Quarter ended June 20, 2020. The Firm’s total revenue from operations declined 47.94 percent year-on-year to Rs.31,983.06 crore during the first quarter.
