Mumbai: AirAsia India's promoters are set to infuse additional capital in the airline even as losses have eroded its equity capital. According to filings with the Registrar of Companies, the airline's board has approved the issue of equity shares on a rights basis and an increase in authorised share capital from Rs 195 crore to Rs 3,300 crore. Authorised share capital indicates the maximum amount a company can raise through issue of shares.
The board approval, secured two months ago, indicates fund infusion is round the corner. But, the investment is yet to take place and differences among shareholders are believed to be the reason for the delay. The proposed investment sum could not be immediately ascertained.
Along with additional infusion, changes in shareholding structure is also likely.
AirAsia India is a tripartite joint venture of AirAsia Malaysia (49 per cent), Tata Sons (41 per cent) and Arun Bhatia-owned Telestra Tradeplace ( 10 per cent). So far, the promoters have invested $30 million in accordance with the original investment plan.
Bhatia, who did not participate in the previous round of fund raising last August, has publicly accused the Malaysian partner of controlling the operations. Bhatia is expected to exit the airline and there have been discussions between Bhatia and Tata Sons over a stake sale. However, no deal has been materialised yet.
09/03/16 Aneesh Phadnis/Business Standard
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The board approval, secured two months ago, indicates fund infusion is round the corner. But, the investment is yet to take place and differences among shareholders are believed to be the reason for the delay. The proposed investment sum could not be immediately ascertained.
Along with additional infusion, changes in shareholding structure is also likely.
AirAsia India is a tripartite joint venture of AirAsia Malaysia (49 per cent), Tata Sons (41 per cent) and Arun Bhatia-owned Telestra Tradeplace ( 10 per cent). So far, the promoters have invested $30 million in accordance with the original investment plan.
Bhatia, who did not participate in the previous round of fund raising last August, has publicly accused the Malaysian partner of controlling the operations. Bhatia is expected to exit the airline and there have been discussions between Bhatia and Tata Sons over a stake sale. However, no deal has been materialised yet.
09/03/16 Aneesh Phadnis/Business Standard
