FIPB meet on Jet-Etihad deal postponed to Friday

Written by ENS Economic Bureau | Mumbai | Updated: Jun 11 2013, 14:10pm hrs
Jet AirwaysShares of Jet Airways fell more than 11% on the BSE
Shares of Jet Airways slipped by over 11 per cent at close on Monday. On Friday after market hours the company had announced its chief executive officer Nikos Kardassis has resigned.

The airline seeking to offload a 24 per cent stake to Etihad Airways will also need an approval of the deal from the Foreign Investment Promotion Board.

The meeting slated for Tuesday has however been postponed to Friday principally as the finance minister will not be in the capital.

In a brief announcement on Friday without citing any reason the airline had also said the chief operating officer Hamid Ali will replace Kardassis until a replacement is named.

After plunging 13.46 per cent in intra-day trade, the scrip finally ended at Rs 403.70, down 11.18 per cent from its previous close on the Bombay Stock Exchange (BSE) while at the National Stock Exchange (NSE), the stock closed 11.37 per cent lower at Rs 402.

The shares dipped on a day when the Sensex gained, though marginally at less than one per cent. 11.52 lakh shares of the company changed hands on the BSE, while over 32.56 lakh shares traded on the NSE.

Jet Airways plans to sell 24 per cent stake to Abu Dhabi-based Etihad for about Rs 2,058 crore.

Meeting of the FIPB scheduled to be held on Tuesday has been postponed and will now be held on Friday... The Agenda already circulated will remain, the Finance Ministry said in a note.

The FIPB will also decide on approving the raising of the foreign investment holding in the Indian subsidiary of Norways telecom firm Telenor among the 28 other FDI proposals listed for the meeting.

This includes a plan by MCX (Multi Commodity Exchange of India) for a post facto approval for FDI received before issuance of Press Note 2 of 2008. The Press Note sums up the detailed guidelines for foreign investment in commodity exchanges.

The other proposals on the FIPB agenda include that of Alliance Insurance Brokers, Muthoot Finance Ltd and ICICI Venture Funds Management Company.