Govt approves Jet proposal to raise $400 mn

The government today approved the proposal of Jet Airways for raising around Rs 1,850 crore from foreign investors.

The Cabinet Committee on Economic Affairs approved the Jet Airways' proposal, as recommended by Foreign Investment Promotion Board, to raise $400 million via equity investment through the qualified institutional placement route from foreign institutional investors, an official statement said.

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.