The government plans to sell Air India to a strategic investor this fiscal. Such a sale of a state-owned unlisted company could give a fillip to the government’s divestment programme and spur stock markets in India. Mint dissects the reasons that make the sale of the carrier important for all stakeholders and how this could encourage stock market investors.
How is the plan to sell Air India different from other divestments of state-owned companies?
The government wants to sell Air India to a strategic investor, which means it will sell to someone interested in running the airline. Most of the major government divestments in its firms in the last 20 years have taken place through IPOs or an offer for sale of an already listed firm.
