Shares of Jet Airways rose 3 per cent Friday after its board approved a bank-led provisional resolution plan (BLPRP) that will pave the way for conversion of the airline's debt into equity, making lenders the largest shareholders in the company.
The company's shares gained 2.99 per cent to close at Rs 232.55 apiece on the BSE. Intra-day, it advanced by 7.55 per cent to Rs 242.85.
At the National Stock Exchange, shares rose 2.94 per cent to close at Rs 232.55 apiece.
The plan proposes restructuring, under the provisions of the Reserve Bank of India's February 12, 2018 circular, to meet a funding gap of nearly Rs 8,500 crore.
"The BLPRP contemplates conversion of lenders' debt into 11.40 crore shares of Rs 10 each by allotment of such number of equity shares to the lenders that would result in the lenders becoming the largest shareholders in the company," the airline said in a filing to exchanges.
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