Tata Increases Stake In AirAsia India:  Key Takeaways By ICICI Securities 
AirAsia Group Bhd. aircraft stand on the tarmac at Kuala Lumpur International Airport 2 (KLIA 2) in Sepang, Selangor, Malaysia. (Photographer: Samsul Said/Bloomberg)

Tata Increases Stake In AirAsia India: Key Takeaways By ICICI Securities 

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ICICI Securities Report

AirAsia group, on December 29, 2020, announced it will be selling 32.67% stake in AirAsia India Ltd. to Tata Sons for a consideration of 37.7 million U.S. dollar (Rs 2.8 billion) with a provision to sell its remaining 16.3% stake for 18.8 million U.S. dollar, which implies an equity valuation of Rs 8.5 billion for AirAsia India.

This deal indicates -

  1. possible consolidation within the industry,
  2. a strategic commitment of Tata group towards the aviation sector and
  3. likely low valuations for weaker players.

Click on the attachment to read the full report:

ICICI Securities Aviation Air Asia Stake Sale.pdf

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