Looking at the financial condition of TruJet, the Hyderabad-based regional carrier’s future remains uncertain. Due to Covid-19, its survival is in question.
Turbo Megha Airways Pvt Ltd’s TruJet, which started operating in July 2015 and has been awarded for its routes in the first round of the UDAN scheme, has always had a turbulent existence.
In April 2021, Interups, a US-based fund, acquired a 49% stake in TruJet to help survive the Hyderabad-based airline.
Laxmi Prasad, Chairman of Interups, announced that it collaborated with Finexic, a US-based company. Other than Finexic, it has also approached a Saudi Arabian company and a London-based NRI businessman.
Interups already owns more than 27,500 qualified asset accounts which US-based NRIs own.
Finexic matches dollar for dollar with us at a 7% coupon optionally convertible preference shares through a Singapore entity that is owned by one listed Indian company,” Laxmi Prasad was quoted as saying. “We are in the process of acquiring this company to hold assets in India and run fund and non-fund based financial verticals.”
What will happen to TruJet if it doesn’t get funded?
According to Mr Prasad, if the expected funds are not received, it will fund the gap of Rs 315 crore, along with its investing partner FCG. It also aims to complete its first leg of funding by August 31. Once it reaches the first leg of funding, TruJet will still need another Rs 765 crore as a second-year capital infusion.
Mr Prasad believes that its company has a revival plan to support TruJet. “Infusion of Rs 1,575 crore and Rs 765 crore in a year with a wet-lease arrangement from another domestic airline will make TruJet a national carrier, with a support expansion into cargo and medical services to balance airline revenues,” he added.