Published on : Friday, April 12, 2019
Tata Sons and Singapore Airlines own stakes of 51 per cent and 49 per cent, respectively, in Tata SIA Airlines, which runs the full-service airline, Vistara. Of the total, Tata Sons pumped in ₹459 crore of fresh equity by subscribing to two rights issues—one in December, the other in March.
Following a board meeting on 6 March, Vistara informed the corporate affairs ministry on 18 March that the company had approved an issue of shares worth ₹500 crore on a rights basis.
As per the rights issue documents, Tata Sons will purchase 255 million equity shares of Tata SIA Airlines at ₹10 each, while Singapore Airlines will buy 245 million shares. In December, Vistara raised ₹400 crore through a separate rights issue by allotting 204 million shares to Tata Sons and 196 million shares to Singapore Airlines at ₹10 apiece.
The proceeds of the rights issue will be mostly used to fund the purchase and lease of 56 aircraft. The money will also help in lowering losses and attaining break-even faster as per the officials.