Jet Airways shares reverse losses, up 9% after SBI statement on resolution plan

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Published: January 17, 2019 3:40:04 PM

Jet Airways share price zoomed more than 9 per cent to Rs 295.80 on BSE after State Bank of India (SBI) Thursday said lenders are considering a resolution plan for the debt-struck airline to ensure the long-term viability of the company.

Jet Airways shares declined 5.31 per cent to Rs 256.60 on BSE.. (Source: IE)

Jet Airways share price zoomed more than 9 per cent to Rs 295.80 on BSE after State Bank of India (SBI) Thursday said lenders are considering a resolution plan for the debt-struck airline to ensure the long-term viability of the company. Earlier in the day, the stock fell for the second straight session today, plunging over 5 per cent, amid continued uncertainty over the revival plan of the company. The scrip declined 5.31 per cent to Rs 256.60 on BSE. On NSE, shares of the company slumped 4.93 per cent to Rs 256.40.

“We would like to state that lenders are considering a restructuring plan under the RBI framework for resolution of stressed assets that would ensure a long-term viability of the company,” SBI said in a statement.

Also read: Share market LIVE: Sensex recovers losses, Nifty above 10,900; Jet Airways zooms 9%, Axis bank up 2%

After public sector lender’s statement on resolution plan, Jet Airways Chairman Naresh Goyal also told the former that he is ready to invest up to Rs 700 crore in the airline but on the condition that he stake doesn’t plunge below 25 per cent, news agency PTI reported.

PTI also reported Goyal saying that he is committed to an “infusion of funds into the company to the extent of Rs 700 crore” and pledging all his shares.

According to Jet Airways’ shareholding pattern on BSE, as of the quarter ending December 2018, Goyal owns 5,79,33,665 shares, amounting to 51 per cent stake in the company.

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