InvestorQ : How does Tata Sons proposes to fund the acquisition of Air India?
Arti Chavan made post

How does Tata Sons proposes to fund the acquisition of Air India?

Answer
image
Rutuja Nigam answered.
2 months ago
Follow

It looks like the Tata group is moving on a war footing to consummate the Air India deal. Just a day after the Government issued the LOI to Tata Sons for Air India acquisition, the Tata Sons board has scheduled a meeting on Tuesday 12-Oct to discuss fund raising plans. Tatas are most likely to borrow some of the funds required and possibly monetize some of their holdings to raise the requisite funds to bankroll the acquisition.

Tata Sons has to pay Rs.18,000 crore for Air India and that includes Rs.2,700 crore in cash payment plus Rs,15,300 crore of debt of Air India being assumed. The AGM held in the month of September had already approved debt raising of up to Rs.40,000 crore. For the time being, the board is only likely to clear Rs.15,000 crore for the Air India acquisition. In addition, Tatas are expected to invest another $3 billion to turn around Air India.

2 Views