Telestra Tradeplace holds nearly 10 percent stake in the low-cost airline. While Tata Sons would buy 7.94 percent shareholding, the remaining stake would be purchased by the carrier's two directors –  S Ramadorai and R Venkataramanan, in their individual capacity.

Ramadorai, who is chairman of AirAsia India, and Venkataramanan would acquire 0.5 percent and 1.5 percent shareholding, respectively.

The latest development comes against the backdrop of Arun Bhatia expressing unhappiness over the state of affairs at budget carrier. Besides, there have been concerns in certain quarters about control and ownership at the airline.

Last month, the airline appointed Amar Abrol as CEO replacing Mittu Chandilya.

In a release today, Tata Sons said it would raise its stake in the airline to 49 percent from 41.06 percent by acquiring 7.94 percent equity stake from Telestra.

The deal is expected to be completed next month, subject to relevant corporate approvals and processes, the release added.

In this regard, an agreement was inked on March 14 by Tata Sons with Air Asia (India) Ltd, Telestra Tradeplace Pvt Ltd, Ramadorai and Venkataramanan.

Malaysia's AirAsia Berhad would continue to hold 49 percent stake in the airline.

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