Jet Airways is looking to raise money by pledging promoter shares of Naresh Goyal who holds 51% in the airline, sources in the direct know of the development told FE. The carrier can raise nearly $150 million or Rs 1,035 crore against these share pledges, sources said.
Analysts estimate Jet’s immediate funding requirement at close to Rs 3,500 crore. Jet’s shares closed at Rs 283.30, down 1.12% on Tuesday, and are trading at their lowest levels since 2015. The total number of outstanding shares, of a value Rs 10 paid-up each, is 11.36 crore. The airline’s net worth was a negative Rs 7,139.13 crore at the end of March 2018. Accumulated losses are at Rs 10,771. 69 crore.
A Jet Airways spokesperson said the information regarding pledging of shares “is completely baseless and incorrect”.
Meanwhile, State Bank of India chairman Rajnish Kumar on Tuesday said the carrier had not approached it for any fresh loans, Reuters reported citing a news channel. Kumar said the account remained a standard account on the lender’s books.
Facing its worst financial crisis in its 25 years, Jet reportedly asked its staff to take salary cuts late last week but decided against it. The company has deferred its Q1FY19 results after its audit committee declined to propose the results for the board’s approval due to “pending closure of certain matters”, the airline said.
The civil aviation regulator is due to conduct a financial audit of the airline as the civil aviation ministry puts it on a “watch” list. The capital markets regulator on Monday asked Jet to indicate the date of the announcement of its results at the earliest.
BY- Manisha Singhal