Jet Airways soars 24% in two days in weak market

The stock moved higher by 19 per cent to Rs 301 on Monday, gaining 24 per cent in past two trading days on the National Stock Exchange.

Shares of Jet Airways (India) has surged 19 per cent to Rs 301 per share on Monday, gaining 24 per cent in past two trading sessions on the National Stock Exchange (NSE), on reports that founder and chairman Naresh Goyal was likely to step down from the company's board and give up majority control. The Nifty 50 was down 0.52 per cent at 10,738 points at 03:15 pm.

Earlier in the day, CNBC TV18 reported that Jet Airways was likely to finalise a resolution plan with its lenders this week and that Goyal would trim his 51 per cent stake to 20-25 per cent and agree to voting rights on his stake being capped at 10 per cent, in a bid to save the debt-laden carrier. The report also said Etihad may infuse capital into Jet and raise its stake from the 24 per cent it currently owns.

“The bankers met top executives of Jet Airways on Tuesday, January 8, 2019, to discuss the financial state of the airline and how loans of over Rs 8,000 crore could be recast, it is learnt that SBI could possibly consider converting its debt to equity in the Goyal-led company,” the Business Standard report suggested.

Also, lenders are clear that  Naresh Goyal must step down from the Jet board, though there could be an arrangement by which he may continue his association with the airline in a non-executive capacity, added the report. CLICK HERE TO READ FULL REPORT

On clarification on news report, Jet Airways (India) clarified that there is no discussion or decision in the Board which would require disclosure under SEBI norms.

At 03:13 pm; Jet Airways (India) was trading 16 per cent higher at Rs 295 on the NSE. The trading volumes on the counter soared more than four-fold with a combined 35.53 million equity shares changed hands on the NSE and BSE so far.