 "Tata Sons' board takes stock of Air India acquisition")
The board of directors of Tata Sons, the holding company of the Tata Group, on Tuesday discussed the acquisition of Air India and the fundraising plans for the Rs 18,000 crore acquisition.
The company will be raising around Rs 15,000 crore as debt from banks to fund Air India acquisition. The board also discussed the integration plan among the group's airlines. The Tata Group owns 51% stake in Tata SIA Airlines and 83% stake in low-cost carrier, AirAsia India.
The shareholders had earlier cleared the company to raise upto Rs 40,000 crore for Air India acquisition, and roll out its TataNeu app.
Tata Sons did not make any official comment on the board meeting.
A banker said they are waiting for loan proposals from Tata Sons for Air India acquisition and with its strong balance sheet, and good credit rating, it will not have any problems getting funds at cheaper rates. The company will also look at raising funds as external commercial borrowings, the official said.
Tata Sons' net debt was Rs 25,396 crore as on August 31, 2021 and company’s liquidity position is backed by its balance of cash and liquid investments of Rs 2,718 crore as on March 31, 2021.
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