Air Odisha to sell stake to Sharjah oil company

Mumbai: Scheduled commuter carrier Air Odisha is all set to take a Sharjah-based NRI investor on board as it seeks to tap fresh capital to fuel its expansion plans and the announcement to this effect is likely to be made soon, a source said. The airline has brought in industry veteran Bhupesh Joshi as its CEO ahead of bringing in the new Sharjah-based partner, the source said.

Air Odisha is currently 60 per cent owned by two Ahmedabad-based firms —GSEC Aviation-Monarch Networth Capital– and the rest 40 per cent stake is with original promoter Radhakanta Pani family.”However, GSEC Aviation-Monarch Networth have decided to partially offload their stake to the Sharjah-based crude oil firm Ghalia Petrol. The two partners have already signed the term-sheet and are expected to make an announcement on the deal soon,” the source said.

The decision was taken at Air Odisha Pvt Ltd’s board meeting held in Bhubaneswar last month, the source added. The GSEC Aviation-Monarch Networth Capital had acquired 60 per cent stake in the carrier from Pani family in November last year along with the acquisition of G R Gopinath-founded Air Deccan.

GSEC Aviation is owned by Rakesh Ramanlal Shah, brother-in-law of Adani Group chairman Gautam Adani. Air Odisha managing director Shaishav Shah confirmed that the airline was getting a new investor in addition to the existing promoters to infuse fresh capital, adding that it had already signed an agreement to clinch the deal.

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