Jet Airways surges on cabinet nod for Jet-Etihad stake sale deal
The stock has rallied 5% to Rs 408 on the National Stock Exchange.
Jet Airways (India) has surged 5% at Rs 408 in early morning deals on NSE after the Union Cabinet late Thursday cleared Jet Airways' proposed sale of 24% equity to Abu Dhabi-based Etihad.
According to the proposal Etihad was to subscribe 27.26 million Jet Airways equity shares of Rs 10 each, amounting to 24% of post-issue paid-up equity share capital for Rs 2,060 crore.
Apart from the Rs 2,060-crore investment, the deal allows Jet to collaborate with Etihad on commercial, marketing and sales and technical matters, and expand its network. In all, there would be a cash infusion of $750 million in debt and equity that will help the airline cut down its debt from $2.1 billion to $1.5 billion.
The stock opened at Rs 410 and hit a low of Rs 400 so far. A combined 400,000 shares change hands on the counter till 0916 hours on NSE and BSE.
According to the proposal Etihad was to subscribe 27.26 million Jet Airways equity shares of Rs 10 each, amounting to 24% of post-issue paid-up equity share capital for Rs 2,060 crore.
Apart from the Rs 2,060-crore investment, the deal allows Jet to collaborate with Etihad on commercial, marketing and sales and technical matters, and expand its network. In all, there would be a cash infusion of $750 million in debt and equity that will help the airline cut down its debt from $2.1 billion to $1.5 billion.
The stock opened at Rs 410 and hit a low of Rs 400 so far. A combined 400,000 shares change hands on the counter till 0916 hours on NSE and BSE.