Air India stake sale: Singapore, London roadshows receive lukewarm response from potential buyers

Investment roadshows held in Singapore and London to attract prospective buyers for Air India received lukewarm response. The debt-laden national carrier's entire stake has been put on sale by the government under the proposed disinvestment process. The roadshows are a part of efforts to revive Air India.

"The response to the roadshow in Singapore was tepid and it was similar in London, where only a couple of interested parties attended. Definitely, there are concerns about the interest the airline will receive from potential buyers," a source told the Economic Times.

The tepid response, however, is unlikely to delay the government's proposed privatisation plan schedule which is expected to conclude initial bidding documents for Air India by next month, the news daily reported.

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This will be the Modi regime's second attempt to put its entire stake in Air India on sale. The dispensation in its first attempt in 2018 had planned to retain a 24% stake in Air India.

The government is planning to issue the expression of interest (EoI) in January 2020 after holiday season ends to make sure that foreign buyers participate more actively in the national carrier's stake sale process.

Another source told the news daily that there was a greater investor interest at the Mumbai roadshow but the exercise did not elicit many inquiries overseas.

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"Given the response at these roadshows, there is not much hope of bids coming in for the national carrier. Even on the domestic front, there are not many takers for Air India," an official told the news daily.

Air India's net loss in 2018-19 is provisionally estimated to be Rs 8,556.35 crore.

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