Business Standard

Air India stake sale: Govt may include call and put options in agreement

The Ministry of Civil Aviation has suggested that the government should holds 24-26% stake in Air India after disinvestment


Arindam Majumder New Delhi
The government is likely to include call and put options in the share purchase agreement of Air India to profitably sell its residual stake in the airline after strategic disinvestment.
A put option gives the existing shareholders the right to sell securities at a specified price, thereby providing an exit route from the company. A call option allows the buyer to acquire shares at a predetermined price, which is usually above the current price, within a limited time period, allowing it to increase its shareholding in the company.

While the government will have the put option to sell its residual

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First Published: Feb 28 2018 | 7:03 AM IST

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