Jet complies with Sebi's 25% holding norms; sells 5% stake

Jet Airways today said it has complied with market regulator Sebi's 25% minimum public shareholding norm by selling 5% of its promoters' stake through OFS route and block deal.

"The company's promoter Tail Winds Ltd has through an OFS /Block Deal sold 43.17 lakh (amounting to 5% stake) equity shares through the stock exchanges," Jet Airways said in a regulatory filing.

Pursuant to the share-sale, the company has now complied with the minimum public share holding norms of 25% as stipulated by Sebi.

All listed private sector companies need to achieve 25% minimum public shareholding by June 3, 2013 to avoid penal actions by the regulator.

Earlier in the day, Jet Airways said that Sebi has allowed its promoters to sell further 1.54% stake.

Jet Airways yesterday received bids for around 30 lakh scrips, accounting for 3.5% stake, against offer of nearly 43 lakh shares via offer-for-sale route.

Sebi, in a communication to Jet Airway's main promoter Tail Winds, today said, "promoters of the company are allowed to sell up to 1.54% of the share capital on the floor of the stock exchange in a bona fide manner to unrelated non -promoter entities through the regular market conditions."

Shares of Jet Airways, which opened on a weak note, further fell by seven% to a low of Rs 491.50.

The company's shares closed down by 7.01% at Rs 491.50 apiece on BSE.

Meanwhile, Tail Winds is in the process of transferring its stake to Jet Airways chairman Naresh Goyal. Since last week, Tail Winds had sold 66% stake to Goyal through two block deals on the stock exchanges.

Yesterday, Goyal had picked up nearly 37% stake in the company for about Rs 1,670 crore. Last week, Goyal had purchased 29% stake from Tail Winds for about Rs 1,434 crore.

At the end of March quarter, Tail Winds held 6.90 crore shares or 79.99% stake in Jet Airways, while Goyal owned 9,995 scrips, amounting to 0.01% holding, in the company in his personal capacity.

The transactions are part of Jet Airways' plan to make Goyal its main promoter with at least 51% stake in his personal capacity. Jet's board and shareholders have already approved allotment of shares on preferential basis for sale of 24% stake to Abu Dhabi-based Etihad Airways.

After the completion of Jet-Etihad deal, Jet has proposed to have 51% stake with Goyal, 24% with Etihad and remaining 25% with the public.