Jet Airways gains 2% on report of fundraising through rights issue

Lenders of the company may convert Rs1,000cr of debt into equity and are likely to participate in equity infusion through a rights issue as part of the deal.

Feb 18, 2019 12:02 IST India Infoline News Service

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Shares of Jet Airways climbed 2% on Monday after media reports stated that the debt-ridden airline company is all set to raise ~Rs2,500cr through a rights issue and the company’s lenders are planning for a debt-to-equity conversion.

As per the reports, lenders may convert ~Rs1,000cr of debt into equity and are likely to participate in the equity infusion through a rights issue as part of the deal.

Additionally, promoter Naresh Goyal and Etihad Airways, which owns a 24% in the company, will infuse around Rs2,000cr into the company, media reports added.

Further, the government-owned infrastructure fund National Infrastructure Investment Fund (NIIF) is likely to buy a 19% stake for Rs1,500cr in the company. Along with the NIIF, banks will own a 51% stake in the company.

Moreover, Etihad Airways is likely to inject ~Rs1,450cr to maintain its stake at 24%, and promoter Naresh Goyal would bring in Rs550cr to hold around 21-22%. Goyal has already infused Rs250cr into the airline, reports added.

Media reports also stated that the SBI-led consortium would release ~Rs550cr in the next 15 days to bridge the immediate funding gap.

Jet Airways (India) Ltd's share price is currently at Rs237.95, up by Rs5.4 or 2.32%, from its previous close of Rs232.55 on the BSE.
The scrip opened at Rs239 and has touched a high and low of Rs245.90 and Rs235.50, respectively. So far, 44,84,848 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs2,641.77cr.

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