Price Verdict: Minimum reserve price fixed for Air India, buyer's name also likely to be finalized
Minimum Reserve Price Fixed For Air India, Buyer's Name Also Likely To Be Finalized
TPN24 Desk 
The government has fixed the minimum reserve price for the sale of public sector company Air India. He has met representatives of the two finally selected companies for further talks. Sources said that to whom Air India will be sold is likely to be finalized.
It is not yet decided when the winning bid will be announced
A source said, "The government has decided the winner of the bid, there is every possibility that." However, it is not yet decided when the winning bid will be announced. Representatives of the shortlisted bidders - Tata Sons and SpiceJet Chairman Ajay Singh (in person) met government officials on Wednesday.
There was a presentation on the valuation on Tuesday
According to the source, the decision on the reserve price for Air India has been taken by the Committee of Secretaries (CoS), but the details are not available. Another source said that a presentation was made on Tuesday regarding the valuation of the company. The Tata group is said to be leading the race as it has bid higher.
More than 200 employees of Tata Group are engaged in the process
The Tata Group has inserted indemnity clauses in its bids to protect itself from unforeseen claims of liability in the near future. According to the source, apart from Tata Sons' M&A team and external auditors, more than 200 employees of the group, including M&A specialists from Vistara, AirAsia India, Tata Steel, and Indian Hotels, are involved in the bidding process.
Visit the offices and maintenance centers built at the airport
The source said that the AirAsia team has visited Air India's offices and maintenance centers at several airports and examined their working aspects. Experts say that the indemnity clause can be effective for limited value and time. Therefore, the Tata group may seek a government guarantee to protect against claims of pre-purchase liability of Air India. The indemnity clause mentions those things, due to which the party to the agreement gets protection from future damages.
