Naresh Goyal has option to raise stake; expect buyer for Jet by May 31: SBI chief

Embattled Jet Airways promoter Naresh Goyal, who was forced to cut his stake in the cash-strapped airline, will be eligible to bid for takeover of one of the oldest private carrier when the lenders auction it next month, SBI Chairman Rajnish Kumar said Monday.

State Bank of India, which is the leader of the group of lenders, will next month invite Expression of Interest from buyers willing to takeover the airline and will finalise the investor by May end, he said.

Consortium of lenders led by the SBI Monday agreed to put in Rs 1,500 crore immediate funding by acquiring 51 per cent stake in the company through issue of Rs 11.4 crore fresh shares.

As a result, the stake of promoter Naresh Goyal will come down to 25 per cent from 51 per cent, while Abu Dhabi's Etihad Airways, which had a 24 per cent stake in the carrier, came down to 12 per cent.

Bidding process to be initiated by lenders for sale to new investor(s) is expected to be completed in June quarter as per the resolution plan.

"June is too late. My expectation is May 31...market is open for everyone whosoever wants to come in. There will be expression of interest which will be given by April 9 and binding bids by April 30.

"It could be financial investor, it could be airline...including Naresh Goyal himself or Etihad. No body is barred from bidding or taking over the airline as per the rule," Kumar said.

Asked about board nominee from lenders' side, Kumar without revealing names said, it would be top quality professional who would see through the process of sale for which strict timelines are there.

Jet Airways has a debt of over Rs 8,200 crore and needs to make repayments of up to Rs 1,700 crore by the end of March. It has already defaulted on an ECB payment earlier this week but is servicing its domestic debt.

Jet Airways Founder and Chairman Naresh Goyal and his wife Anita Goyal will step down from the board of the ailing airline following reduction in their stake to 25 per cent as per the resolution plan formulated by SBI-led domestic lenders.

After weeks of speculations and uncertainties over the future course of Jet Airways, which has grounded over 80 planes due to financial woes, approved constitution of an Interim Management Committee to manage and monitor the daily operations and cash flow of the company.

Shares of the airline zoomed 12.69 per cent to close at Rs 254.50 on the BSE.