Jet Airways tanks 34% on suspension of operations; hits 10-year low

The stock tanked 34 per cent to Rs 159, its lowest level since April 1, 2009. It was its sharpest intra-day fall since listing on March 14, 2005.

Shares of Jet Airways (India) tanked 34 per cent to Rs 159, also its 10-year low on the National Stock Exchange (NSE) on Thursday after the company suspended operations as lenders turned down the airline’s demand for emergency funding.

The stock was trading at its lowest level since April 1, 2009. It recorded its sharpest intra-day fall since its listing on March 14, 2005. It ended 32.23 per cent lower at Rs 169 apiece. 

According to a Business Standard report, lenders’ consortium, led by State Bank of India, indicated the effort to select a new investor would continue even as Jet was “temporarily” grounded on Wednesday.

The grounding comes after weeks of painstaking negotiations between the airline and its lenders for funds following a severe cash crunch that had led to defaults and mounting dues. The airline was initially committed an interim funding of Rs 1,500 crore in March, as part of a bank-led resolution plan which was to see the transfer of ownership and management to banks, added report. CLICK HERE TO READ FULL REPORT

Jet Airways (India) is a part of the derivative markets/ future and options (F&O) segments. In case of stock, the price threshold is known as price bands, which are only available for stocks that are not a part of F&O. Even if the stock has no derivative, but is part of an index which has its own derivative contract, it will not have price bands.

At 09:47 am, Jet Airways was trading 27 per cent lower at Rs 175 on the NSE, as compared to a 0.01 per cent rise in the Nifty50 index. A combined 10.99 million equity shares changed hands on the counter on the NSE and BSE till the time of writing this report.

A sharp decline in market price of Jet Airways has seen investor lost Rs 929 crore market capitalisation in intra-day trade today. The company’s market-cap stood at Rs 1,965 crore, the BSE data shows.