US-based fund Interups will pick up 49 per cent stake in Trujet, the companies announced in a joint statement today. The exact investment sum is yet to be finalised.
Trujet began operations as a regional airline in 2015 and now serves 21 destinations with seven ATR-72 aircraft. The investment will help fund the airline’s expansion and mark Interups’ foray in Indian aviation.
The airline has faced operational challenges in the past due to intermittent funding from its promoters leading to lack of spares and engines, industry sources said. Megha Engineering and Infrastructure Limited (MEIL) is majority owner of the airline.
Interups has been promoted by chartered accountant Laxmi Prasad, a native of Andhra Pradesh. Earlier it had bid for Air India but withdrew its offer as the airline’s employees were unwilling to join hands for the bid. Interups has also bid for several stressed assets including Lavasa Corporation, Asian Colour Coated Steel and Reliance Naval. It had even shown interest to acquire 49 per cent stake in AirAsia India held by its Malaysian promoter but was rebuffed by the Tata group.
“The funds raised through 49 per cent FDI in the company, will be utilised to expand its operations pan India and explore the newer opportunities in the civil aviation sector. We will finalise the exact final amount at a later stage." Laxmi Prasad and MEIL’s group director K V Pradeep said in a statement.