Monday, November 23, 2020

Tata Group, Singapore Airlines infuse Rs 585 crore in Vistara: Report

Promoters Tata group (51 percent owner) and Singapore Airlines (49 percent owner) have invested Rs 585 crore to keep Vistara afloat amid the COVID-19 pandemic – in what is their second-highest equity infusion in a year in the airline.

The Rs 585 crore capital for FY21 was through purchase of shares in a rights issue, The Economic Times reported.

Moneycontrol could not independently verify the report.

Overall, shareholders have pumped three tranches of infusions (first in April of Rs 500 crore and second in July of Rs 750 crore) into the airline since the pandemic shut air travel completely in March – and has only resumed in slow phases. Total investment in the first seven months of FY21 is now Rs 1,835 crore – up from the Rs 1,500 crore in FY20, the report said.

The infusions are for maintaining liquidity, covering fixed costs and making payments to lesser, executives told the paper.

Vinod Kannan, Chief Commercial Officer of Vistara, acknowledged that the pandemic has affected growth plans, but did not comment on the financial information, as per the report.

23/11/20 Moneycontrol

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