@royskaria
Not sure if you know how valuations are done, however do some research on the Valuation Gopi got for his airline (which by the way was listed at that time and he got a premium over market cap at that time) to where it is trading. If memory serves me correct he got about 290 a share. I think it is at Rs 42 today. Highest it has ever reached is from when gopi sold out a ridiculous P/E. So not sure if VM timed it correct. So if VM drove down valuation it hurt him the most.
Driving a valuation down would mean Air India is listed on the BSE or NSE. Not sure it is, so then what would drive such an industry down! Efficiency of operations and that starts with staff strength and employee unions. Brand, Landing and airport rights and aircraft on order cannot get diluted at all in spite of the apathy. These are the only strengths AI has at the moment. A smart PE or strategic investor would ask AI to shed flab (staff) and cut payroll (staff) and automatically get a huge jump in valuation especially if the union was tamed and brought on the same page for turnaround. Hmmm now that makes me think do you think the government is trying to do just that at the moment.?
Trust me no employee likes to lose his/her job as well as lifestyle they have gotten used to. Trust me a corporate is driven to expand and show returns to investors. Too many market forces pulling here and maybe it is good if there is a total showdown which will allow the airline to be set free from government shackles. That I can assure you will not be acceptable to the staff also as it means they will be parachuted into corporate reality.
Beauty of capitalism.
PS: Edit: Jet airways will only become a target if their share holding drops below a certain level. Don't think it is close to it. SEBI however has set a mandate for listed companies to increase float to ensure that such risks come into the system to ensure efficiencies. GO air unfortunately is not listed so cannot suffer "corporate raiding", but sure the promoters can try and cash out for a tidy profit if they so desire and if the MRTPC act determines it is not illegal. On the other hand Paramount is a perfect example of him trying to create a product to sell of to corporate raiders and failing miserably in spite of his
PR.
Are you part of the red parties? Just an observation as corporates seem to be a bad and evil word in your dictionary. FYI free market enterprise cannot dictate who a product will be sold to. I believe Mr Raja is in Jail for attempting just that. And setting valuation correct would mean letting go many more employees.................now lets see how that would work out.