Jet Airways to raise fund through rights issue: Media reports

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

Feb 16, 2019 01:02 IST India Infoline News Service

Jet-Airways3
Jet Airways is planning to raise ~Rs2,500cr through the rights issue, while the company’s lenders are planning for a debt-to-equity conversion, media reports said.

As per the reports, lenders may convert Rs1,000cr of debt into equity and they 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 ended at Rs232.55 up by Rs6.75 or 2.99% from its previous closing of Rs225.80 on the BSE.
The scrip opened at Rs224.15 and touched a high and low of Rs242.85 and Rs215 respectively. A total of 2,59,29,898 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs2,641.77cr.

Related Story

Open Free Demat Account (Rs699)