Air India Seeks Transaction Advisors For The Sale Of PF Trust Securities
Divestment-related Air India is seeking to sell the securities of its two provident trusts AIEPF and IAEPF, and has solicited requests for transaction advisers to assist in the proposed sale of the securities.
The Air India Employees Provident Fund Trust (AIEPF) and Indian Airlines Employees Provident Fund Trust (IAEPF) are governed by the Provident Fund Act of 1925. The investments of the two trusts together amounted to Rs 4,500 crore as of August 31, 2021, according to the tender document, soliciting tenders for the appointment of transaction advisers.
Of the AIEPF trust corpus, 68.75% were invested in central and state government bonds, 22.40% in corporate bonds and 8.85% in SDS (Special Deposit Scheme). In the case of the IAEPF trust, 45.93 percent of investments were in central and state government bonds, 39.28 percent in corporate bonds, 13.35 percent in SDS and 1.44 percent in stocks. .
The Request for Proposal (RFP) submission deadline for the appointment of Transaction Advisors is October 18. Among other things, the transaction advisers will guide the PF trusts in the process to be adopted for the sale of securities.
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