Tata Sons' Investment Corporation share price up more than 6% amid Air India sale
The price of Tata Investment Corporation Limited (NSE) has shot up by 6.50% on October 1 with the share price at Rs 1,454 after winning the Air India bid.
- India News
- 2 min read
The price of Tata Investment Corporation Limited or TATAINVEST (NSE) has shot up by more than 6% on October 1, with the share price at Rs 1,454. The share price rose drastically after 11 AM following Tata Sons, the holding company of Indian multinational conglomerate group Tata Group, won the bid to take control of Air India. ANI, citing sources, reported that the Committee of Ministers on the national carrier disinvestment headed by Union Home Minister Amit Shah has approved the winning bid for the national airline.
According to Financial Express, the actual price of TATAINVEST rose by Rs 85 with an increase of 6.22%. The day;’s open on Friday was Rs 1,369.75 and the previous close was at Rs 1,367.00. The latest hike in price corresponds with Tata Sons winning the bid for national carrier Air India. Last week, the government evaluated financial bids received from Tata Group and SpiceJet founder for the acquisition of Air India.
Air India returns to Tata fold after 67 years
As per reports, the financial bids were evaluated against an undisclosed reserve price and the bid offering the highest price above the set benchmark was taken into consideration. The latest acquisition of Tata Sons marks the return of Air India to tata fold after at least 67 years. The Tata Group had founded Air India as Tata Airlines in October 1932 before the government nationalised the airline in 1953.
Now, the government has decided to sell 100% of its stake in the state-owned national airline including Air India’s 100% shareholding in AI Express Ltd along with 50% in Air India SATS Airport Services Private Ltd. The stake sale process started back in January 2020 and was subjected to several delays due to the COVID-19 pandemic. In April 2021, the government had asked the potential bidders to pour in financial bids. The last day for the same was September 15. Tata Group was one among several entities that had put in an initial expression of interest (EoI) in December 2020 for buying the Maharaja.