The government is considering a proposal to park 25 per cent equity in Indian Airlines with financial institutions for the interim period, pending an initial public offer.
The rationale for the move, according to sources, is that since IA shares are presently rated below par, the government will not tap the primary market till the company turns around.
The government is, however, expecting the strategic sale of 26 per cent of its equity in the carrier within the next 3-4 months.
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The parking of 25 per cent stake with FIs would ensure that the government stake in IA falls below the 50 per cent mark, making IA a joint sector company.
It would no longer be governed by public sector enterprise (PSE) rules, enabling a
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