Jet Airways (India) rose 2.81% to Rs 423.80 at 9:45 IST on BSE on reports the airline received conditional approval from the foreign investment regulator to sell a stake to Etihad Airways.
Meanwhile, the S&P BSE Sensex was down 34.85 points, or 0.18%, to 19,558.43.
On BSE, 4.30 lakh shares were traded in the counter as against an average daily volume of 13.20 lakh shares in the past one quarter.
The stock hit a high of Rs 445 and a low of Rs 417 so far during the day. The stock had hit a 52-week high of Rs 688.60 on 25 April 2013. The stock had hit a 52-week low of Rs 320.60 on 30 October 2012.
The stock had underperformed the market over the past one month till 29 July 2013, sliding 8.29% compared with the Sensex's 1.02% rise. The scrip had underperformed the market in past one quarter, falling 32.38% as against Sensex's 1.06% rise.
The mid-cap company has an equity capital of Rs 86.33 crore. Face value per share is Rs 10.
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India's Foreign Investment Promotion Board (FIPB) reportedly allowed Jet Airways (India) to sell 24% stake in itself to Etihad Airways. The proposal will now be forwarded to the Cabinet Committee on Economic Affairs, headed by Prime Minister Manmohan Singh, for final approval. According to reports, the FIPB approved the deal with certain conditions.
Economic Affairs Secretary Arvind Mayaram was quoted by the media as saying on Monday, 29 June 2013, that the deal was approved with some conditions. However, he did not elaborate on the conditions set.
Last month, FIPB deferred a decision on Jet-Etihad deal, asking for more details on effective control and ownership of the Indian carrier post the stake sale.
Jet Airways and United Arab Emirates (UAE)-based Etihad Airways on 24 April 2013 announced that it agreed to subscribe to 2.72 crore new shares of Jet Airways at a price of Rs 754.74 per share. The value of this equity investment is $379 million and will result in Etihad Airways holding 24% of the enlarged share capital of Jet Airways.
But political concerns and scrutiny by market regulators have delayed the deal and it risks missing a deadline of 31 July 2013, before which regulatory approvals had to be secured.
Jet Airways (India)'s net loss widened to Rs 495.53 crore in Q4 March 2013, from net loss of Rs 298.12 crore in Q4 March 2012. Net sales declined 0.1% to Rs 3840.27 crore in Q4 March 2013 over Q4 March 2012. The company unveils Q1 results on 8 August 2013.
The Jet Airways group currently operates a fleet of 109 wide and narrow-bodied aircraft under the Jet Airways and JetKonnect brands.
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