The board of Tata Sons, the holding company of $103-billion Tata group, is meeting on Tuesday to discuss plans to raise debt to fund Air India acquisition. The Tata Sons board will also be apprised about the acquisition of Air India for Rs 18,000 crore and the group’s consolidated plans for its airline business.
In the AGM held in September, the shareholders of the company had approved up to Rs 40,000 crore to the company debt raise plans. Of this, the board may clear raising around Rs 15,000 crore, said a source close to the development.
Apart from spending Rs 18,000 crore for the acquisition, Tata Sons will also have to spend an additional $3 billion to turn around the airline which may take upto five years. The company is planning to house all its airline investments under its subsidiary, Talace Pvt Ltd.
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