Jet Airways shares slumps over 7 pct after delay in payments to banks

Shares of Jet Airways tumbled nearly 7 per cent Wednesday after the crisis-hit firm defaulted on repayment of loans to a consortium of Indian banks. The stock tanked 6.16 per cent to close at Rs 263.75 on BSE. During the day, it cracked 7.13 per cent to Rs 261. On NSE, shares of the company slumped 6.89 per cent to end at Rs 261.45.

The company's market valuation eroded by Rs 195.87 crore to Rs 2,996.13 crore on BSE. In terms of equity volume, 9.66 lakh shares of the company were traded on BSE and over one crore shares changed hands on NSE during the day. The full-service carrier, which has been grappling with financial woes for some time now, has been making delayed salary payments to its staff.

"Payment of interest and principal instalment due to the consortium of Indian banks (led by State Bank of India) on December 31, 2018, has been delayed due to temporary cash flow mismatch," the airline said in a filing to the stock exchanges late Tuesday.

The airline, which is also looking to raise fresh funds, said it has engaged with them (banks) in relation to the loan repayments. Rating agency Icra Wednesday downgraded its ratings on the airline's long-term and short-term fund facilities.

(With inputs from agencies.)