Jet Airways takes off on buzz of Sebi nod for Jet-Etihad deal

Jet Airways (India) surged 6.35% to Rs 394.40 at 14:32 IST on BSE on reports that the Securities and Exchange Board of India has approved Jet Airways' proposed sale of 24% stake to Abu Dhabi-based Etihad Airways.

Meanwhile, the S&P BSE Sensex was up 373.84 points or 1.92% at 19,890.99.

On BSE, 8.23 lakh shares were traded in the counter as against average daily volume of 4.87 lakh shares in the past one quarter.

The scrip was volatile. The stock surged as much as 7.34% at the day's high of Rs 398.10 so far during the day. The stock rose 2.46% at the day's low of Rs 380 so far during the day. The stock hit a 52-week high of Rs 688.60 on 25 April 2013. The stock hit a 52-week low of Rs 280 on 28 August 2013.

The stock had outperformed the market over the past one month till 1 October 2013, surging 27.07% compared with the Sensex's 4.82% rise. The scrip had, however, underperformed the market in past one quarter, sliding 20.32% as against Sensex's 0.31% fall.

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

The stock market regulator Securities and Exchange Board of India (Sebi) has reportedly approved the Jet Airways' proposed sale of 24% stake to Abu Dhabi-based Etihad Airways as both carriers revised their deal to comply with conditions set by the regulator. After studying the revised deal structure, Sebi was of the opinion that the Rs 2058 crore transaction would not trigger a mandatory open offer for purchase of shares from public shareholders and Etihad would not be considered a promoter entity in Jet Airways, reports suggest.

As per reports, Sebi has asked Naresh Goyal-led Jet promoters to divest a 6% stake before allotting the shares to Etihad "in the interest of corporate governance and to ensure well dispersed public shareholding". Goyal would eventually have a 51% stake in the company, Etihad 24% and the public the remaining 25%, reports suggest.

Etihad Airways had on 24 April 2013 announced that it has agreed to subscribe to 2.72 crore new shares of Jet Airways at Rs 754.74 per share. The value of this equity investment is $379 million and will result in Etihad Airways holding 24% of the enlarged share capital of Jet Airways.

Meanwhile, the Jet-Etihad deal is likely to get clearance from the Cabinet Committee of Economic Affairs today, 3 October 2013, reports suggest.

Jet Airways (India) reported a net loss of Rs 355.38 crore in Q1 June 2013, compared with a net profit of Rs 24.70 crore in Q1 June 2012. Net sales declined 13% to Rs 3778.78 crore in Q1 June 2013 over Q1 June 2012.

Jet Airways connects 20 international destinations and operates flights to and from 49 destinations in India.

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