InvestorQ : What happens to the divestment of Air India with the deadline once again being extended by the government?
Mitali Bhutta made post

What happens to the divestment of Air India with the deadline once again being extended by the government?

Answer
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4 months ago


It might be a long road ahead for any sale in the near future. Most buyers will be cash strapped unless a Tata or Reliance steps in.


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Dawn Cherian answered.
4 months ago


Due to the disruption caused by COVID-19, the government has extended the deadline for submitting bids for Air India Ltd to 30 June from the earlier deadline of 30 April. This is largely due to the COVID-19 lockdown that has hurt the economy. Government is counting heavily on the Air India, BPCL and LIC divestment to reach the target of Rs.205,000 crore via divestments in fiscal 2021. Of course, the lockdown is also likely to impact the valuations of Air India, the way it has hit all aviation companies. Government aims to sell its entire stake in Air India. The cabinet even approved an amendment to the FDI policy to permit NRIs to invest up to 100% under the automatic route.