Air India Privatised - Booster Dose For Reforms; Shot-In-The-Arm For Divestment Agenda: Motilal Oswal

Air India Privatised - Booster Dose For Reforms; Shot-In-The-Arm For Divestment Agenda: Motilal Oswal

An Air India Ltd. aircraft prepares to land at Chhatrapati Shivaji International Airport in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

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Motilal Oswal Report

In a major boost to the ongoing reforms program, the Government of India has announced the first privatisation after 19 years.

Tata Sons won the bid for Air India for an enterprise of Rs 180 billion, bringing to a close a long-drawn process of privatising the loss making Air India. 

With this transaction, privatisation 2.0 is likely to get a big boost and would be followed up with the rest of the planned divestments, in our view.

Government of India has a clear and well-stated intent of disinvestment in non-strategic sectors and minimum presence in strategic sectors.

This augurs fairly well for other big-ticket divestment items on the agenda, such as Bharat Petroleum Corporation Ltd., SCI, Pawan Hans, as well as Lice Insurance Corporation of India IPO.

Click on the attachment to read the full report:

Motilal Oswal Aviation Sector Update Air India.pdf
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