Jet Airways seeks to raise about Rs 6,000 cr from govt fund, stake sale; shares rise 7.5%
et Airways said on Thursday its board had approved a rescue deal that will make its lenders its largest shareholders and fix a near Rs 8,500 crore funding gap.
National Investment and Infrastructure Fund will funnel Rs 1,500 crore
Jet Airways' board on Thursday approved a rescue deal
Jet Airways plans to raise about $840 million (about Rs 6,000 crore) from a government fund and a rights issue, Business Television India said, a day after the company’s board approved a deal for some lenders to infuse funds and restructure debt.
The National Investment and Infrastructure Fund will funnel Rs 1,500 crore ($210 million) into the debt-laden carrier for a 20 percent stake and Jet Airways may propose to raise Rs 4,500 crore via a rights issue priced at Rs 125-150 per share, Business Television India reported, citing sources.
Jet Airways said on Thursday its board had approved a rescue deal that will make its lenders its largest shareholders and fix a near Rs 8,500 crore ($1.2 billion) funding gap.
Jet Airways and the fund were not immediately available for comment.
Shares in Jet Airways were volatile, dropping as much as 4.8 percent when trading opened on Friday and rising as much as 7.5 percent later as investors cheered the rescue deal. The stock was at Rs 232 rupees by 0825 GMT.
Jet Airways pilots appealed for intervention from Prime Minister Narendra Modi, who is facing wider criticism over the scarcity of jobs as he campaigns for re-election in polls now underway.
Jet Airways crisis: Lenders to take debt-laden airline to NCLT as banks yet to get any concrete proposal for revival
The bank said lenders have been making efforts to find a resolution for Jet Airways outside IBC but now have decided to seek a resolution within the IBC.
Jet Airways crisis: Two operational creditors of debt-laden airline file petitions in NCLT to recover dues
The move by Shaman Wheels and Gaggar Enterprises came at a time when Hinduja Group is evaluating an opportunity to invest in the now-grounded Jet Airways.