Jet Airways gains over 5% on bourses

Jan 31 2013, 21:20 IST
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Etihad Airways Etihad Airways
SummaryAfter surging 5 per cent during the day, the scrip finally closed 4.34 per cent higher at Rs 622.10 on the BSE.

Shares of Jet Airways India today rose by over 5 per cent on expectations of company's stake sale deal with Abu Dhabi-based Etihad Airways may close soon. After surging 5 per cent during the day, the scrip finally closed 4.34 per cent higher at Rs 622.10 on the BSE.

At NSE, the stock ended at Rs 625.30, up 5.13 per cent from its previous close. In terms of volume, 15.78 lakh shares of the company changed hands on the BSE, while over 51 lakh shares were traded on NSE.

"Buzz that Jet and Etihad deal may close soon, sent the stock soaring. Jet could see further upside if the deal is closed much higher above the current price," said Milan Bavishi, Head Research, Inventure Growth & Securities.

The Etihad delegation, led by its CEO James Hogan, and Jet Airways promoter Naresh Goyal met Civil Aviation Minister Ajit Singh and Commerce Minister Anand Sharma. Neither Hogan, nor Goyal spoke about the meetings.

Etihad is likely to buy 24 per cent equity in Jet Airways valued at about Rs 1,800 crore. If the deal is carried through, it would be the first investment by a foreign carrier in an Indian airline. A meeting of the Jet Airways' Board is slated in Mumbai tomorrow.

Surge in the stock was in sharp contrast with an overall weak broader market, where the BSE benchmark Sensex was trading at 19,894.98, down 110.02 points.

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