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Jet Airways hits 5% upper circuit for 5th straight day; up 27% in one week

According to a report, eighteen months after it was grounded, Jet Airways is all set for a comeback.

Jet Airways stock | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

Jet had shut its operations in April 2019 and was taken to the insolvency court two months after by its lenders.
Jet had shut its operations in April 2019 and was taken to the insolvency court two months after by its lenders.

Shares of Jet Airways (India) were locked in the upper circuit for fifth straight day, up 5 per cent at Rs 36.45 on the BSE on Wednesday on hopes for the revival. In the past week, the stock has gained 27 per cent, as compared to a 1 per cent rise in the S&P BSE Sensex.

Till 11:44 am, a combined around 95,000 shares had changed hands and there were pending buy orders for 125,000 shares on the BSE and NSE, the exchange data shows.

According to a Business Standard report, eighteen months after it was grounded, Jet Airways is all set for a comeback. Lenders to Jet have begun voting to choose its new owner. So far, two banks have voted on the resolution plans and the process is expected to continue till October 16. Kalrock Capital-Murari Lal Jalan combine has emerged as the frontrunner. A consortium of Imperial Capital and FSTC is the other bidder. CLICK HERE TO READ FULL REPORT

There was media report that a consortium consisting of Kalrock Capital and Murari Lal Jalan has been chosen as the successful resolution applicant by the committee of creditors in the corporate insolvency resolution process of the company. However, Jet Airways clarified in a stock exchange filing on October 8 that a consortium had not won a round of bidding for the bankrupt carrier.

The resolution professional shall make appropriate disclosures before the stock exchange after the voting process has been duly concluded. CLICK HERE FOR STATEMENT

The promoter Naresh Goyal held 25 per cent stake in Jet Airways, according to the shareholding pattern. The state-owned Punjab National Bank held 26 per cent, while Life Insurance Corporation had 2 per cent holding in the company. Overseas corporate bodies have 24 per cent stake, while individual shareholders held 20.17 per cent holding, the data shows.

Currently, Jet Airways is trading under ‘Z’ category on the BSE, under which all trades are settled on trade-to-trade (T2T) basis. Stocks classified under the T2T category cannot be traded on an intraday basis and traders or investors purchasing or selling these shares need to take delivery by paying full amount. Stocks clubbed in the ‘Z’ category are those which fail to comply with the exchange’s listing requirements or may have failed to redress investor complaints.

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First Published: Wed, October 14 2020. 12:02 IST