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Subsidiaries of Air India To Be Sold Separately, China Cuts Import Tax et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Sep 20, 2018 1:04 PM 2 min read

Good evening reader,


Thanks to literally zero buyer interest in an over-leveraged and capital intensive business, the government has gone from pitching Air India as an airline of national pride to now splitting it up in pieces to explore fire sale options. 


Identifying four subsidiaries for sale, representing 1) the passenger and cargo-handling business 2) maintenance, repair and overhaul (MRO) business 3) hotels and catering, and 4) the airline's regional component, it appears that the government is now segregating the International operations and Air India Express away from the rest. 


Seems IndiGo may jump back in :) Advise tracking their stock. 


Plenty of drama as always. Moving on to today's Top 6 Business stories through our End Of Day Wrap Up.




RBI asks Yes Bank to find a replacement for current CEO and MD Rana Kapoor whose term shall end on 21st Jan, 2019.

The private sector lender has been asked to look for a replacement for their current CEO and Managing Director, Rana Kapoor, who has been asked to vacate office by 21st of January 2019. This is following a term extention from August 30. The Board of Directors is scheduled to meet on the 25th of this month to discuss the course of action, as per the statement issued by the bank.


Government hikes interest rates of small savings schemes.

Government has announced a raise of interest rates on small saving deposits. Beginning October, saving schemes like Public Provident Fund (PPF), National Savings Certificates (NSC) and Post Office Deposit Scheme will fetch more for savers. PPF and NSC will earn 8% as opposed to 7.6% earlier whereas; Senior Citizen Savings Scheme will bring in 8.7% interest. The interest on savings deposits has been retained at 4%.


Air India to be sold in pieces as four subsidiaries are put in line.

Having found no buyers for Air India, the government shall now put on sale four of its subsidiaries - the Air India Engineering Service, which overlooks maintenance and repair, Air India Air Transport service that supervises ground and cargo handling along with the Hotel Corporation of India and the Airlines Allied Services which provide regional air connectivity. Government also plans to sell the its headquarter buildings in Delhi and other cities.


Airtel, Jio among bidders for Aircel’s fiber assets.

In the wake to bag over INR25,000 crores from their fiber asset sale, Aircel is looking for a lump-sum sale to single party, for which telecom giants like Airtel, Reliance Jio among others are current bidders.




$60 million losses reported as Japanese Cryptocurrency Exchange gets hacked.

Hackers stole over $60 million of digital coins from Zaif, the Osaka-based Cryptocurrency Exchange owned by Tech Bureau Corp, from which $19.6 million coins belonged to the exchange and the rest was investor money.


China may slash Broad Import Tax by next month.

As the ongoing trade war with US deepens, China plans to cut its import tax with other trading partners by the month of October to further boost imports and encourage domestic consumption.



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