Jet Airways likely to raise Rs 250 cr by 5% stake dilution

Naresh Goyal-promoted Jet Airways is likely to raise Rs 253 crore through divesting its 5% stake of the promoter to meet the Sebi norms of 25% public float, which is likely to be done before May 30.

 

Goyal and other promoters hold 80% in Jet Airways and the 5% stake dilution is required to conform to market regulator's minimum 25% float norm, which has to be met by June 30.

 

Post the offer for sale (OFS) and 24% proposed stake sale to Etihad Airways, Goyal's holding will come down to 51%.

 

As part of the OFS and Etihad deal, last week Goyal had bought back around 28% holding from the promoter company Tail Wind, which is fully-owned by him.

 

Goyal will dilute 5% of his stake by way of OFS and is expected to mop up around Rs 253.1 crore through this, Kotak Institutional Equities said in a report.

 

According to the report, several private companies, including Jet, are expected to raise around USD 1.9 billion equity issuance to comply with the Sebi norms.

 

At the last week's closing price, the airline's marketcap stood at Rs 5,062.6 crore, it said.

 

On Friday, Jet senior vice-president for commercial finance investor relations K G Vishwanath had told the shareholders at the extra ordinary general meeting that the airline will undertake the OFS by May 29 or 30.

 

The higher public float will improve corporate governance and help protect interests of minority shareholders.