Jet Airways shares tank 5% on NSE on profit booking, shareholders clear Etihad deal

May 24 2013, 19:38 IST
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Reuters Reuters
SummaryThe stock fell due to profit booking ahead of Jet's results later in the day: Kishor Ostwal

Jet Airways shares today fell by 5 per cent on profit booking just ahead of quarterly results, even as its shareholders approved the sale of 24 per cent stake to Abu Dhabi-based Etihad Airways.

After falling 4.66 per cent to Rs 557 in intra-day trade, shares of the carrier ended at Rs 562.70, down 3.69 per cent on the BSE.

The fall was sharper at the NSE, where the stock settled 5.01 per cent lower at Rs 557.


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"The stock fell due to profit booking ahead of Jet's results later in the day," said Kishor Ostwal, CMD, CNI Research.

The scrip has seen volatile trading in the past few weeks.

Meanwhile, Jet Airways shareholders today approved the sale of 24 per cent stake to Etihad, with the Indian carrier's Chairman Naresh Goyal saying that the deal will improve profitability, reduce costs and lower the debts.

At the airline's Extra Ordinary General Meeting (EGM), shareholders approved the proposed issue of shares on a preferential basis to Etihad. The shares will be allotted after the completion of all regulatory approvals.

The resolution to amend the Article of Association was deferred, apparently, following the market regulator Sebi and competition watchdog Competition Commission of India seeking more clarity on the deal.

The deal is being looked into by Competition Commission of India (CCI) and Securities and Exchange Board of India (Sebi) besides other regulators.

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