Jet Airways drops on concerns over delay in Etihad deal

Meanwhile, the BSE Sensex was up 58.75 points, or 0.32%, to 18,473.20.

On BSE, 2.34 lakh shares were traded in the counter as against an average daily volume of 7.76 lakh shares in the past one quarter.

The stock hit a high of Rs 488.70 and a low of Rs 472.05 so far during the day. The stock had hit a 52-week high of Rs 688.30 on 28 January 2013. The stock had hit a 52-week low of Rs 275.10 on 16 May 2012.

The stock had underperformed the market over the past one month till 10 April 2013, sliding 9.75% compared with the Sensex's 6.45% fall. The scrip had also underperformed the market in past one quarter, declining 15.26% as against Sensex's 6.35% fall.

The mid-cap company has an equity capital of Rs 86.33 crore. Face value per share is Rs 10.

As per reports, Jet Airways (India)'s stake-sale deal with Abu Dhabi-based carrier Etihad may be delayed until at least August 2013 as Etihad is seeking assurances following setbacks for several Gulf investors in India.

Etihad was reported to be buying 24% equity in Jet Airways (India) for about Rs 1800 crore.

Etihad, which is expanding globally, has been in talks over an equity stake in Jet Airways (India) since September 2012 after India relaxed ownership rules and allowed foreign airlines to buy up to 49% in local carriers. In January 2013, Jet Airways had confirmed that it was in discussion with Etihad regarding a potential investment by the latter in the former.

Reports further indicated that the deal, which would inject much-needed funds into Jet and help Etihad expand its reach into the vast Indian aviation market, has slowed over concerns of past failed forays by Gulf investors into India and the Abu Dhabi firm's demands to protect its potential investment.

Jet Airways (India) reported net profit of Rs 85 crore in Q3 December 2012 as against net loss of Rs 101.22 crore in Q3 December 2011. Net sales rose 6.6% to Rs 3941.39 crore in Q3 December 2012 over Q3 December 2011.

Jet Airways currently operates a fleet of 99 aircraft. It connects 20 international destinations and operates flights to and from 53 destinations in India.

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