Jet shares end higher after initial losses

Paring its initial losses, Jet Airways today ended marginally up after the private carrier said its promoter and chairman Naresh Goyal will not dilute his equity stake in the airline below 51 per cent at anytime.
After falling 5.76 per cent to Rs 437.50 in intra-day session, shares of Jet Airways finally bounced back and ended at Rs 464.75, up 0.11 per cent on the BSE.
At the NSE, it closed 0.49 per cent higher at Rs 466.
The stock had fallen in early session amid concerns that Naresh Goyal has pledged his entire shareholding in the carrier to state-run Punjab National Bank.

Private carrier Jet Airways today said its promoter and chairman Naresh Goyal will not dilute his equity stake in the airline below 51 per cent at anytime -- a comment that comes a day after the disclosure about encumbrance of his entire holding.
In a statement the airline said that the undertaking given to PNB is "an undertaking of non-disposal of any further equity and not a matter of pledging of his shares".
"Jet Airways would like to categorically state, for the benefit of all its stakeholders, that the undertaking given to PNB implies that the airline's promoter and chairman will not dilute his equity, by way of a sale, below 51 per cent at any time, and will continue to be the majority shareholder in the airline," it said.

The statement follows a regulatory filing made by Jet last evening wherein it was disclosed that Goyal has created an "encumbrance" on all his 57,933,665 shares, constituting 51 per cent stake, in the airline effective January 8 to PNB with a "non-disposal undertaking".