Jet Airways falls 6% after clarification on Tata investment

InterGlobe Aviation, was down 4% to Rs 799, extending its 4% decline in past two days after the rating agency ICRA downgraded the long-term rating on the company's loan facilities.

Shares of Jet Airways (India) slipped 6.5% to Rs 219 per share on the BSE in intra-day trade after the company said that the news report of Tata Group being in talks to buy a majority stake in the airline is speculative in nature.

“The news is speculative in nature and that there is no discussion or decision in the Board which would require the disclosure,” Jet Airways said in a regulatory. The airline made the clarification on news report that Tata Group is in talks to buy a majority stake in debt-laden Jet Airways.

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

The stock Jet Airways closed at Rs 229 on Friday, had appreciated by 30% in past seven trading days from Rs 176 on October 9, 2018. It hit a 52-week low of Rs 163 on October 1, on the BSE in intra-day trade.

Meanwhile, shares of other airline company InterGlobe Aviation, was down 4% to Rs 799, extending its past two days 4% decline after the rating agency ICRA downgraded the long-term rating on the company’s loan facilities. InterGlobe Aviation operates India's biggest airline, IndiGo.

“ICRA has revised the Company's long term rating to [ICRA] A+ (negative) from [ICRA] AA (stable),” InterGlobe Aviation said in a statement.

ICRA has stated that this rating action taken into -consideration the significant depreciation of the Indian Rupee coupled with a sharp rise in global crude oil prices. However, ICRA has also noted that the Company's competitive cost-structure coupled with its liquidity position places it in better position to overcome this phase as compared to other domestic airlines, it added.