Cabinet may consider Jet proposal to raise Rs 2,000 cr
Press Trust of India / New Delhi Dec 23, 2009, 20:45 IST
A proposal of Jet Airways to raise $400 million (about Rs 2,000 crore) from foreign investors may come up before the Union Cabinet when it meets here tomorrow, official sources said today.
The premier private carrier plans to seek official permission to raise $400 million or about Rs 2,000 crore via equity investment through the Qualified Institutional Placement route from Foreign Institutional Investors.
The proposal was last month recommended for the consideration of the Cabinet Committee on Economic Affairs (CCEA) as the investment involved was above Rs 600 crore.
Earlier, the Foreign Investment Promotion Board had deferred the proposal by the private carrier saying the issue would require the approval of the CCEA as it involved investments over Rs 600 crore.
The airline intends to raise the money to meet its cash flow requirements and had got the shareholders' approval for the same on July 24.
In order to raise the amount, the airline had earlier proposed to issue Rs 7.92 crore worth fresh equity shares at a price of Rs 252.50 per scrip.
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