Indian Minister supports Air India IPO
India’s Heavy Industries Minister, Praful Patel, formerly India’s Minister of Aviation, supports Air India’s plan to launch an IPO as it would be in the government’s interest in the long run (CNBC, 03-Feb-2011). Mr Patel also stated that the merger of the carrier with Indian Airlines is management's responsibility but that the merged identity would have a better valuation.
India: “A joint entity will have a much better chance to get a better valuation in the market. I still maintain that in the long run it is in Air India's interest that some portion of the equity must be diluted. I was always certain that the merger was well intentioned but not well implemented. That should not be a case now or it can’t forever be the only reason for all the problems.” Praful Patel, India’s Minister of Heavy Industries. Source: CNBC, 03-Feb-2011.