NEW DELHI: Mumbai-based Darwin Platform Group of Companies, which recently shot into prominence for its interest in Jet Airways, said on Monday that it proposed to acquire considerable stake in the grounded airline as it plans to foray into the aviation sector. “We are a debt-free company,” Darwin chairman Ajay Harinath Singh said in a statement.
“Darwin Group is all set to expand its wings into several sectors and given the opportunities in the aviation sector Darwin Aviation proposes to acquire a considerable stake in Jet Airways.”
The little known group, which claims to have a net worth of Rs 24,000 crore from businesses across different verticals, made big ripples last week when it said it would infuse Rs 14,000 crore to revive the shut down airline - an amount which is more than what was offered by Etihad Airways to acquire a minority stake in the airline. Other players have reportedly asked the lenders to take a massive haircut on their Rs 8,500 crore exposure to the airline, but Darwin made an offer which is just enough to get the airline flying again and pay-back bankers with a far smaller haircut, said analysts.
“Soon, I believe Jet Airways will be back in the air,” said Singh. According to Darwin’s website, the group has business interest in over a dozen sectors and has aggressive expansion plans. However, not much is known about the finances and sources of funds of the group. The chairman of the group — Singh is a native of Sultanpur in Uttar Pradesh.
Allegations of financial fraud have been made against the company when some of its previous employees reportedly lured people to make investments on promises of high returns. Singh, however, termed these allegations as “false, fake and malicious.” Bedside Darwin Group, a section of Jet’s employee are also trying to take charge of the airline. Last week, they wrote a mail to SBI Caps and said they are in talks with investors to raise $700 million to revive the airline.
The mail was signed by representatives of JAMEWA (Jet Aircraft Maintenance Engineers Welfare Association) and Society for Welfare of Indian Pilots. Other unsolicited bidders include former flight steward-turned-entrepreneur Jason Unsworth and London-based investment firm Adi Partners. Jet Airways was shut down on April 17, for an “indefinite period” after bankers refused to grant any more working capital to the ailing airline.
Since then, the central government has allocated most of its domestic slots on a temporary basis to rival airlines and is currently in the process of allotting its international flying rights too. Even if a successful bidder emerges, the revival of the airline will take time as the slots have been awarded for a three month period.