JM Morgan Stanley to advise A-I on IPO

JM Morgan Stanley has won the mandate to lead-manage the initial public offer (IPO) of national carrier Air-India. The IPO is expected to hi...

JM Morgan Stanley has won the mandate to lead-manage the initial public offer (IPO) of national carrier Air-India. The IPO is expected to hit the market in three months’ time.

The airline is planning to sell shares in such a way that the government need not have to disinvest its shares and create a political storm. The government — which owns 100 per cent stake in the airline — will see its stake falling automatically as the airline will sell additional shares without touching the government’s shares.

JM Morgan Stanley was among the six shortlisted merchant bankers to advise the airline on the share sale.

Story continues below this ad

A-I officials said they would not comment on the issue till Aviation ministry puts its formal approval. But sources said JM Morgan’s name has been forwarded to the ministry.

DSP Merrill Lynch, Kotak Investment Banking, SBI Capital Markets, HSBC, Enam Financial and Citibank were the other shortlisted merchant bankers who made presentations to the A-I’s management committee in July. ‘‘There is no question of any disinvestment of shares like BHEL which can cause a political crisis,’’ said a merchant banking source.

The airline equity’s base of Rs 153.84 crore, wholly contributed by the government, is likely to be increased to Rs 500 crore to finance its fleet acquisition plans, pegged at Rs 30,000 crore.

All company’s employees will be offered shares so that they can participate in the airline’s maiden public issue. The proposal to sell shares will also not require Cabinet’s approval as the government is not selling any shares.

India vs Pakistan Asia Cup trophy Mohsin Naqvi

India refuse to take Asia Cup winners’ trophy from PCB chief Mohsin Naqvi

Sports19 min ago

India refused to accept the Asia Cup trophy from Pakistan's Mohsin Naqvi, causing a delay in the presentation ceremony. Only three players collected their individual awards, while the team did not go up to the podium or pose with the trophy. The Pakistani players emerged an hour late, causing embarrassment.

View all shorts

Live Blog

PHOTOS