Jet Airways shares up over 4% in morning trade

Shares of Jet Airways today rose by over 4% after market regulator Sebi said Abu Dhabi carrier Etihad does not have to make an open offer for the Indian company's shareholders pursuant to the Rs 2,060 crore stake deal between them.

Jet's stock rose by 4.13% to Rs 245.80 on the BSE. At the NSE, it gained 3.93% to Rs 245.50.

In a major relief for Jet Airways and Etihad, Sebi yesterday said the Abu Dhabi carrier does not have to make an open offer for Jet shareholders.

Clearing the regulatory hurdles for the high profile deal, the Securities and Exchange Board of India (Sebi) also ruled that Etihad "has not acquired control over Jet".

Etihad purchased 24% stake in Jet Airways in a deal worth about Rs 2,060 crore deal which was announced in April 2013.

"...The fact that existing promoters hold 51% shares and voting rights in Jet strengthen the stand of Sebi as communicated to Ministry of Finance vide letter dated September 25, 2013 that Etihad cannot be termed as a person acting in concert along with the existing promoters of Jet under... Takeover Regulations, 2011," the regulator had said in its order.