Jet Airways (India) spurted 10.29% to Rs 233.10 at 10:44 IST on BSE on reports that the India's competition regulator has approved Etihad Airways' 50.1% stake buy in Jet Privilege, a customer loyalty programme unit of Jet Airways.
Meanwhile, the BSE Sensex was down 115.83 points, or 0.57%, to 20,145.20.
On BSE, so far 11.35 lakh shares were traded in the counter, compared with an average volume of 4.22 lakh shares in the past one quarter.
The stock hit a high of Rs 235.40 and a low of Rs 217 so far during the day. The stock hit a 52-week low of Rs 210.25 on Wednesday, 5 February 2014. The stock hit a 52-week high of Rs 688.60 on 25 April 2013.
The stock had underperformed the market over the past one month till 5 February 2014, sliding 27.64% compared with the Sensex's 2.83% fall. The scrip had underperformed the market in past one quarter, falling 39.48% as against Sensex's 3.40% decline.
The small-cap company has an equity capital of Rs 113.60 crore. Face value per share is Rs 10.
On Wednesday, 5 February 2014, the Competition Commission of India (CCI) reportedly approved purchase of 50.1% stake in Jet Privilege (JPPL), Jet Airways' loyalty programme, by Etihad Airways PJSC.
Clearing the transaction by a majority, CCI reportedly said that the deal was unlikely to have any adverse impact on market competition, as Etihad's purchase of 24% stake in Jet Airways (India) has already been approved and the two airlines were already partners in their respective frequent flyer programmes.
Under such customer loyalty programmes, airlines generally offer certain benefits to their frequent flyers.
Under this deal, Etihad will acquire 50.1% stake in JPPL subsequent to the hiving off of Jet's loyalty business into the subsidiary on a going concern basis, reports added.
Jet Airways and Etihad Airways, the national carrier of the United Arab Emirates, on 20 November 2013, announced that both airlines closed the transaction for the subscription of a 24% equity stake by Etihad Airways in Jet Airways. All requisite Indian regulatory approvals had been obtained by 12 November 2013. Jet Airways on 20 November 2013, issued and allotted 2.7 crore shares of a face value of Rs 10 each at a price of Rs. 754.7361607 per equity share on a preferential basis to Etihad Airways.
Consequent to the above allotment, the paid up share capital of Jet Airways stands increased to 11.35 crore shares of Rs 10 each. Following this issue and allotment of the said equity shares on a preferential basis to Etihad Airways, Etihad Airways holds 24% of the post issue paid up share capital of Jet Airways (on a fully diluted basis).
Jet Airways (India) reported a net loss of Rs 894.01 crore in Q2 September 2013, higher than net loss of Rs 99.67 crore in Q2 September 2012. Net sales rose 0.9% to Rs 3788.23 crore in Q2 September 2013 over Q2 September 2012. The company unveils Q3 results on 7 February 2014.
Jet Airways currently operates a fleet of 113 aircraft, which include 10 Boeing 777-300 ER aircraft, 8 Airbus A330-200 aircraft, 4 Airbus A330-300 aircraft, 73 next generations Boeing 737-700/800/900/900 ER aircraft and 15 ATR 72-500 and 3 ATR72-600. With an average fleet age of 5.07 years, the airline has one of the youngest fleet of aircraft in the world. Flights to 75 destinations span the length and breadth of India and beyond, including Abu Dhabi, Bahrain, Bangkok, Brussels, Colombo, Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Kathmandu, Kuwait, London (Heathrow), Muscat, New York (Newark), Riyadh, Sharjah, Singapore and Toronto.
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