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How Jet Airways struggled in stock market this month as airline grounded operations


Devdiscourse News Desk new delhi India
Updated: 17-05-2019 16:55 IST
How Jet Airways struggled in stock market this month as airline grounded operations

Spanish Prime Minister Pedro Sanchez's Socialists won a national election at the end of April but failed to gain a parliamentary majority.

Shares of Jet Airways have fallen over 24 per cent in one month since the cash-starved airline suspended operations. Jet Airways stopped flying on April 17 after it ran out of cash. In one month, shares of the company tumbled 24.28 per cent to Rs 124.10 on the BSE Friday from Rs 163.90 on April 18. Markets were closed on April 17 for Mahavir Jayanti.

The scrip of the firm hit its one-year low of Rs 120.25 on May 15. It's market valuation has eroded by Rs 451.26 crore to Rs 1,409.74 crore on BSE during the one month's time. Jet Airways witnessed top-level exodus earlier this week, with four senior executives, including chief executive Vinay Dube and his deputy Amit Agarwal, quitting the crisis-hit airline.

The carrier on Tuesday announced the exit of Dube, Agarwal, Company Secretary Kuldeep Sharma and Chief People Officer Rahul Taneja. Last month, Independent Director Rajshree Pathy, Non-Executive and Non-Independent Director Nasim Zaidi as well as Whole Time Director Guarang Shetty had quit.

In late March, Jet Airways founder Naresh Goyal along with his wife Anita Goyal as well as Etihad Airways' nominee director Kevin Knight stepped down from their respective positions following a debt-recast plan. Naresh Goyal also stepped down from the post of chairman.

Lenders are scrambling to find a suitor for the cash-starved carrier. On behalf of the lenders, SBI Caps had sought bids for the sale of up to 75 per cent stake in Jet Airways. After the first round of bids, private equity firms IndiGo Partners and TPG, Etihad Airways and National Investment and Infrastructure Fund (NIIF) were shortlisted.

Abu Dhabi-based Etihad Airways submitted its bid to acquire a minority stake in Jet Airways with a lot of riders that involved finding more investors, leaving little hope for the airline's survival.

(With inputs from agencies.)

COUNTRY : India

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