Naresh Goyal buys 37% stake in Jet Airways; total holding at 66%

Goyal had purchased 29% stake from Tail Winds for about Rs 1,434 crore

Jet Airways Chairman Naresh Goyal today purchased about 37 per cent stake in the airline from a promoter entity, signalling  the change in ownership of the airline.  The change in ownership is necessary to conform to the government’s foreign direct investment norms in aviation.

Today, the Isle of Man-registered Tail Winds Ltd, which holds 51 per cent in the airline, sold 31.8 million shares valuing Rs 1,670 crore to Goyal. This is the second such transaction in one week. Last week, Goyal bought 25.1 million shares valuing Rs 1,433 crore from Tail Winds.

Tail Winds, 100 per cent owned by Goyal, had  69 million shares or 80 per cent of shares  in Jet Airways. The change of ownership has been necessitated ahead of Etihad’s investment in Jet.

Tail Winds is categorised as a foreign entity and the government rules do not allow foreign holding in an airline beyond 49 per cent. Last month, Etihad had agreed to take 24 per cent in Jet  in a deal valuing about Rs 2,060 crore. The deal is still to receive various regulatory clearances.

Post  these two bulk purchase transactions Goyal holds about 66 per cent in the airline. His ownership would reduce to 57 per cent after Etihad picks up 24 per cent through preferential allotment. The balance would be held by public shareholders.

Meanwhile,  Jet promoters’ plan to offload 4.3 million shares via offer-for-sale (OFS) was today subscribed a little over 69 per cent, enabling the carrier to raise over Rs 222 crore. The issue received 29,86,022 bids, against 43,17,697 shares on offer, the NSE data showed.

Jet Airways-promoter Tail Winds had set the floor price at Rs 510 a share for five percent stake-sale.