Shares of Jet Airways fell as much as 5.44 per cent to Rs 215.05 apiece on the National Stock Exchange (NSE) in the early trade on Thursday ahead of its December quarter earnings due later in the day.
Apart from this, a resolution plan for Jet Airways has been delayed over issues linked to due diligence in fresh equity investments, promoters’ interests, lenders’ perspective, regulatory hurdles and government concerns, sources in the know said. Industry watchers are drawing parallels with suspense thrillers while waiting for the “climax or anti-climax’’, as an official put it.
A board meeting, scheduled for Thursday (February 14), was expected to take up the proposed deal between Naresh Goyal-promoted Jet, foreign partner Etihad and lenders led by State Bank of India (SBI), but now it is learnt that no decision is likely so soon. In fact, the airline’s extraordinary general meeting (EGM) on February 21 may only pass the enabling resolutions, while the specific numbers and architecture of a deal could be worked out later, an official tracking the development pointed out. READ HERE
Jet Airways in the September quarter reported a net loss of Rs 1,297.46 crore against a net profit of Rs 49.63 crore a year ago. On a consolidated basis, the airline’s net loss stood at Rs 1,261 crore for the second quarter of the current fiscal year ending March, against a net profit of Rs 71 crore in the year-ago quarter.
At 9.40 am, Jet Airways was trading 4.10 per cent lower at Rs 215.05 on NSE, as compared to a 0.27 per cent decline in Nifty50 index.