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Jet Airways locked in 5% upper circuit for second straight day

The Committee of Creditors (CoC) met on Thursday, August 1 and considered to extend the deadline for submission of Expression of Interest for the airline on hopes of receiving bids from four bidders

SI Reporter  |  New Delhi 

Jet Airways (Illustration: Ajay Mohanty)
Jet Airways (Illustration: Ajay Mohanty)

Shares of Jet Airways (India) were locked in the upper circuit of 5 per cent for the second straight day, to quote at Rs 36.85 apiece, on the BSE on Friday after reports suggested that four bidders are likely to bid for the beleaguered airline. The airline gained 16 per cent from Thursday's low of Rs 32 in an otherwise weak market. The S&P BSE Sensex was trading lower by 0.57 per cent at 11:50 am.

Over the past month, shares of the airline company have slipped 52 per cent in value as against a 7 per cent decline in the S&P BSE Sensex. Currently, the stock was trading under ‘T’ group category, under this category, delivery of shares is compulsory.

The Committee of Creditors (CoC) met on Thursday, August 1 and considered to extend the deadline for submission of Expression of Interest (EoI) for the airline on hopes of receiving bids from four potential bidders.

"Bankers discussed about possibility of extending the deadline to receive EoIs," a banking source told agency PTI. At least four investors have shown interest in the assets of the airline, he said. READ FULL REPORT HERE

Late last month, resolution professional Ashish Chhawchharia had floated EoIs for selling stake in the airline that stopped flying since April 17. The deadline for receipt of EoIs was kept as August 3.

According to the report, lenders' consortium leader State Bank of India is said to have approved Rs 10 crore interim funding for the airline. Other banks, however, are yet to approve the proposal.

The lenders, who had been owning the airline since March 25 with 51 percent stake, had on June 17 decided to take the airline to the NCLT as they could not find a buyer.

First Published: Fri, August 02 2019. 11:28 IST
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