Azim Premji, Ranjan Pai family offices to buy minority stake in Akasa Air: Report

A consortium comprising Wipro founder Azim Premji’s family office, Premji Invest, and Manipal group chief Ranjan Pai’s family office, Claypond Capital, is reportedly buying a minority stake in Akasa Air. This stake will be part of the $130-140 million fundraise by Akasa. 

According to a report in The Economic Times, late billionaire stock trader Rakesh Jhunjhunwala’s estate is also looking to double down their holding in the airline. 

The contours of the deal has been finalised and the consortium would seek regulatory approvals from the Competition Commission of India (CCI). The airline signed a term sheet with the Premji Invest-Ranjan Pai consortium earlier this month. It is expected to be completed soon. However, it is yet to be ascertained what the size of the stake would be. 

As per the report, the term sheet has been signed and the consortium has invested over $100 million. With the investments of other investors, the round is expected to amount to $130-140 million. 

The investment talks were centred around a valuation of over $350 million, but the deal is being finalised at a slight discount. The company, the report added, was last valued at around $86 million in 2021, as per Tracxn.

Akasa Air is expected to utilise the newly raised capital for expansion and to make pre-delivery payments for aircraft, according to the report. This latest funding round will result in the dilution of shareholdings of the Jhunjhunwala family and founder and CEO Vinay Dube, along with his brothers Sanjay and Niraj Dube. Collectively, they hold approximately 67 per cent stake in the airline.

The Jhunjhunwala family, which holds around a 38 per cent stake in Akasa Air through various trusts, will continue to be the largest single shareholder, as per the report.