The Government is likely to disinvest its equity in Air India through a public issue in the second half of 2008, Civil Aviation Minister Praful Patel said on Friday.

”We may consider issuing an IPO in the second half of this year,” he said after announcing the launch of the first-ever civil aviation air show — ‘India Aviation 2008′, to be held in Hyderabad from October 15-18.

According to reports, the IPO will most probably be considered during the process of the merger of Air India and Indian Airlines, and will depend on the market conditions at that time Patel had earlier stated that 10-15 per cent of the merged entity’s equity was likely to be divested to enhance the carrier’s equity base.

Employees’ stock option will also be considered during the dilution of equity.

Source : CNN IBN

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