Azim Premji and Ranjan Pai Family Offices Buy Minority Stake in Akasa Air: Report

A consortium comprising Wipro founder Azim Premji’s family office, Premji Invest, and Manipal Group chairman Ranjan Pai’s family office, Claypond Capital, is said to be buying a minority stake in Akasa Air. This stake will be part of a $130-140 million fundraising campaign by Akasa.

According to a report in The Economic Times, the estate of late billionaire stock trader Rakesh Jhunjhunwala is also looking to double its holdings in the airline.

Details of the deal have been finalized and the consortium will seek regulatory approvals from the Competition Commission of India (CCI). The airline signed a term sheet with the Premji Invest-Ranjan Pai consortium earlier this month. It is expected to be completed soon. However, the serving size has not yet been confirmed.

According to the report, the term sheet has been signed and the consortium has invested more than $100 million. With investments from other investors, the round is expected to reach $130-140 million.

Investment talks have centered around a valuation of more than $350 million, but the deal is being finalized at a slight discount. The company was last valued at around $86 million in 2021, according to Tracxn, the report added.

Akasa Air is expected to use the newly raised capital for expansion and to make pre-delivery payments for the aircraft, according to the report. This latest funding round will dilute the stakes of the Jhunjhunwala family, founder and CEO Vinay Dube, along with his brothers Sanjay and Niraj Dube. Together, they own approximately 67 percent of the airline’s shares.

The Jhunjhunwala family, which owns about 38 percent of Akasa Air shares through various trusts, will remain the single largest shareholder, according to the report.