Jet Airways turns volatile; up 15% from day's low on back of heavy volumes

The stock moved higher by 9 per cent to Rs 296, bouncing back 15 per cent from its early morning low of Rs 257 on the BSE.

Shares of Jet Airways turned volatile, rising 9 per cent to Rs 296 apiece in afternoon deals on the back of heavy volumes. The stock recovered 15 per cent from its early morning low of Rs 257.

Jet Airways opened 5 per cent lower, extending its 8 per cent decline in the previous day after the media report suggested Etihad Airways offered to invest in the debt-laden carrier at a discounted rate of Rs 150 per share.

At 02:45 PM, the stock was trading 6 per cent higher at Rs 288 on the BSE, as compared to 0.10 per cent rise in the S&P BSE Sensex.

The trading volumes on the counter more than doubled. A combined 56.10 million equity shares representing 49 per cent of the total equity of Jet Airways have changed hands on the NSE and BSE so far.

Jet Airways, the Naresh Goyal-led company, on Wednesday after market hours has issued an official statement to scotch any speculation around its foreign partner Etihad offering to raise its stake at a steep discount.

The statement confirmed that the resolution plan was considering various options on the debt-equity mix, proportion of equity infusion by stakeholders and the consequent change in the composition of the company’s board of directors.

“We wish to clarify that the resolution plan is presently under active discussion amongst the stakeholders and the various options therein, being privileged and confidential, are yet to be crystallised and agreed to by the stakeholders in the best interests of the Company,” Jet Airways said in a statement.

Pursuant to a delay in the payment of interest and principal instalment due to the consortium of Indian banks, led by State Bank of India (SBI), on 31 December 2018, by the Company, SBI in consultation with the other members of the consortium and the other stakeholders has been working on a comprehensive resolution plan towards a turnaround of the Company for its sustained growth and restoration of financial health, it added.