Jet stocks rise on reports of Goyal quitting, but airline won't confirm

Jet Airways scrip closed over 5 per cent higher on Friday following reports that company's Chairman Naresh Goyal has agreed to step down from his post, though the company is yet yet to confirm.

The scrip price settled 5.32 per cent higher at Rs 234.65 per share.

In a post market hour regulatory filing, the airline said it is "committed to make appropriate disclosures in accordance with applicable regulations to avoid any speculative activities..."

"The company is, however, unable to comment on the reasons for the increase in its share price on the stock exchanges."

The surge in stock prices comes despite the fact that the financially struggling airline has been continuously grounding aircraft over non-payment of amounts outstanding to lessors under their respective lease agreements.

On Thursday, some reports suggested that Goyal will step down as Chairman of the company. But the company's filing said: "There is no discussion or decision in the Board which would require a disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015."

Analysts said that stocks have surged as Goyal's exit would make way for fresh investment.

"Stocks are gaining as Goyal's stepping down will open up the opportunity for new investors which the company is in dire need of," Saurabh Jain, AVP, SMC Global, told IANS.

Earlier some reports said that Goyal will pump in over Rs 500 crore but even that would not fix things for Jet Airways, he added.

Lately, lending major State Bank of India (SBI) met key stakeholders of the beleaguered Jet Airways to take the proposal to convert a part of the company's loans into shares and iron out any differences over the plan.

Sources had said that the lending major had met Goyal and Tony Douglas, Etihad Airways Chief Executive Officer, which is another key stakeholder in the airline, on Wednesday to reach an agreement over the implementation of the Bank-led Provisional Resolution Plan (BLPRP).

The proposal, an attempt to relieve the financial strain on the passenger carrier, was put forth to the shareholders at the Extraordinary General Meeting held here last Thursday.

--IANS

ravi-rv/nir