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Air India’s Journey From TATA To TATA | Tata motors Share Price spike

Air India's journey

Tata Motors stock rallied over 66% on the Bombay Stock Exchange (BSE)  in past 1 month and hit the 52 week high, now trading around 530. Air India’s journey has the part in this rally of TATA Motors share.

So why Tata Motors Stock price is High?

TATA Motors stock trading at its highest level since April 2018 as multiple brokerages remain optimistic about the company’s future outlook also the major factor in surge of share price is Because the story behind Air India’s Deal, How the Maharaja came back to TATA again.

Brokerage firm Morgan Stanley has upgraded Tata Motor’s rating and raised the target price to Rs 498 from Rs 298 earlier. The foreign brokerage firm said it expects the company’s Indian business to perform well.

Air India's journey - Tata share chart


Air India’s Journey From TATA to TATA

The Airline was founded by JRD Tata (Jehangir Ratanji Dadabhoy Tata) in 1932 and was called Tata Airlines. In 1946 the aviation sector of Tata is named as Air India and in 1948 Air India international was launched.

In 1953 Air India goes under Indian Govt control and for almost 40 years it remains India’s pride airline with in control of all domestic airspace.

Then in 1994-95 Aviation sector opened for private players. Private airlines offer cheaper tickets so Air India gradually losses its market share.

As part of its broader privatization and disinvestment push, in 2000-2001 the NDA government unsuccessfully tried to sell a minority stake in Air India.

The airline started suffering losses every year since Air India and Indian Airlines merged while retaining the brand name Air India in 2007. While the Narendra Modi-led NDA Government’s first attempt at selling its stake in the state-owned airline in 2017-2018 failed, the BJP government’s second attempt finally took off in 2021 after 12 months of  its announcement.

Air India's journey

After 68 years, Air India is now all set to return to the Tata group. It took more then two decades for the govt to finally sell its flagship carrier Air India.


Air India Bidding

Tata group win the bid on 18000 crore Rs while The govt set the starting bid on 12906 crore Rs. The Tata will own all 100% stake in Air India and 50% in its joint ventures.

Tata group beats SpiceJet in bidding. Tata groups 18000 bid comprises taking over of 15300 cr of debt and paying the rest 2700 cr in cash to the govt. This transaction is expected to close by the end of the December 2021.

Tata Group own All 141 planes and access to the network of 173 destinations including 55 International destinations. Tata will also have the ownership of Iconic brands like Air India, Indian Airlines and The Maharajah. So now the Air India have traveled a lot and Air India’s journey ends at TATA again.

 

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