Civil Aviation Minister Hardeep Singh Puri on Thursday said bidding for Air India would be done on the basis of its enterprise value instead of equity value.
Enterprise value of a company includes the equity value, debt as well as cash with the company. Equity value measures the value of a company’s shares.
“We have decided to ask for bids for Air India on enterprise value,” Mr Puri said at a press conference.
Aviation Secretary Pradeep Singh Kharola said at the conference, “The bid will be on the enterprise value… In this enterprise value also, a ratio has been earmarked between how much he (bidder) can take as debt and how much he has to give as cash.”