Jet board meets to raise funds

Advancement of board meet date is an indication that Air Sahara deal may be announced soon.

Amid reports of a strategic tie-up with Air Sahara, Jet Airways has called a meeting of its board of directors on January 21 to consider raising funds through an equity or debt instrument, besides taking up its third quarter results for consideration.

Just a year after the company's Rs 1,899 crore IPO in February 2005, its communiqué to the stock exchange on the board meeting fuelled fresh speculation that the Naresh Goyal-promoted company would use the money to pick up an equity stake in Air Sahara.

It is obvious that the funds are not required for fleet expansion as Jet Airways has already tied up with international lending agencies for this purpose.

Earlier, the company had planned to hold its board meeting on January 30 to consider its Q3 results, though no official intimation was sent to the stock exchange.

The advancement of the date is as an indication that an announcement of the deal with Air Sahara may soon be announced.

"The alliance might also require shareholders' permission. Therefore, it would be convenient for Jet Airways to call one general meeting to place resolutions pertaining to strategic alliance as well as fund raising," sources close to the development said.

According to the sources, the board might discuss the strategic alliance with Air Sahara with the permission of Chairman Naresh Goyal, though it was not listed in the agenda for the meeting.

Jet Airways was not forthcoming either on the purpose of raising funds or on the possibility of discussing the strategic alliance. A senior company executive declined to comment on these issues.

But the sources said Jet Airways had constituted separate committees to examine various areas such as marketing, administration and operations just in case the proposed strategic alliance sees the light of the day. Director General of Civil Aviation office said that there was no official communication on the "take-over".

IN THE AIR

Raising funds through equity or debt instruments

Taking stock of the company's third-quarter results

Possible alliance with Air Sahara