Vistara Gets Rs 2,000 Crore From Tata Sons, Singapore Airlines
Full service carrier Vistara received Rs 2,000 crore from Tata Sons and Singapore Airlines, according to a regulatory filing. The flight carrier is preparing to take its operations overseas and is awaiting final approvals.
The airline, majority-owned by Tatas, commenced operations more than three years ago and has a fleet of 22 planes.
On Oct. 12, the board of Vistara approved allotment of 200 crore equity shares of Rs 10 apiece to Tata Sons Pvt. Ltd. and Singapore Airlines, a filing with the Corporate Affairs Ministry said. The allotment of these shares amounts to a fund fusion of Rs 2,000 crore.
The board approved issuance of a little over 101.99 crore shares to Tata Sons and 98 crore shares to Singapore Airlines, according to the filing. Vistara didn’t offer any comments about the fund infusion.
Tata Sons holds a 51 percent stake and the remaining 49 percent is owned by Singapore Airlines in Vistara. The fund infusion comes at a time the airline has embarked on ambitious expansion plans, including buying 19 Airbus, Boeing planes worth $3.1 billion. While making the announcement about aircraft purchases in July, Vistara had also announced leasing 37 new A320neo family planes.
The airline suffered a loss after taxation of Rs 431.09 crore for the year ended March 2018, according to a filing made by Tata Sons to the ministry.