Jet Airways shares soar 17 percent after report that Hinduja Group may save the airline

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Published: May 21, 2019 4:38:59 PM

Shares of debt-laden Jet Airways soared as much as 17 percent in Tuesday’s trading session after media report that Hinduja Group may save the airline. The conglomerate would bid for the grounded airline this week.

After Kamark’s exit, only Ashok Chawla and Sharad Sharma remain on Jet Airways board, which ceased operations on April 17.Jet Airways may be saved by Hinduja Group as the latter is likely to bid for the grounded airline this week: report

Shares of debt-laden Jet Airways soared as much as 17 percent in Tuesday’s trading session after report that Hinduja group would bid for the grounded airline this week. The conglomerate has obtained approval from the key stakeholders in the airline including founder Naresh Goyal and Etihad Airlines.  Today, on the BSE the shares of Jet Airways had opened at Rs 135 against the previous close of Rs 131.40. The shares settled at Rs 148.10, up 16.7 points from the last settlement on BSE.

The Hinduja Group has engaged investors led by SBI Capital Markets for the due diligence. Before taking the final decision, the group will examine the support level from government and bankers for the revival of debt-ridden airline, the Economic Times report said. It will also seek for majority stake in Jet Airways before taking over the airline. The report also said the group needs the support of founder Naresh Goyal and Etihad as most of the top management of the airline has quit.

The Naresh-Goyal founded airline Jet Airways halted all flights from April 17 after the lenders refused to give funds for its flying operations. The troubles for the oldest private airline began mounting up when it had to compete with the budget airlines like Indigo, SpiceJet and Go Air for the market share. The grounded airline is saddles with more than $1 billion in debt and unpaid dues to its employees and leasing firms.

Today, the Sensex and Nifty touched their fresh record high in the early trade after they opened flat in the morning session. Both the headline indices pared gains after the shares of Tata Motors slumped more than 6 percent post its quarterly results for Jan-Mar. Yesterday the stock markets had the best day in ten years after the exit polls predicted BJP victory with a thumping majority in the Lok Sabha elections 2019. While the Sensex surged more than 1400 points, Nifty was also above 400 points on Monday.

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