Jet Airways (India) jumped 5.12% to Rs 325.25 at 11:37 IST on BSE on reports that Etihad is likely to complete its purchase of a 24% stake in the company by 20 September 2013.
Meanwhile, the BSE Sensex was up 364.03 points, or 2%, to 18,598.69.
On BSE, 3.34 lakh shares were traded in the counter compared with average volume of 4.99 lakh shares in the past one quarter.
The stock hit a high of Rs 335 and a low of Rs 323.50 so far during the day. The stock hit a 52-week low of Rs 280 on 28 August 2013. The stock hit a 52-week high of Rs 688.60 on 25 April 2013.
The stock had underperformed the market over the past one month till 3 September 2013, sliding 5.37% compared with the Sensex's 4.85% decline. The scrip had also underperformed the market in past one quarter, falling 35.33% as against Sensex's 7.02% fall.
The small-cap company has an equity capital of Rs 86.33 crore. Face value per share is Rs 10.
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According to reports, UAE-based Etihad Airways is likely to complete its purchase of a 24% stake in Jet Airways by 20 September 2013 as all regulatory clearances are expected to be in place by then.
Late on Tuesday, 2 September 2013, the Union Cabinet cleared the exchange of the bilateral air services agreement (ASA) between India and Abu Dhabi. The ASA will see the number of seats that airlines from India and Abu Dhabi can operate to either destination jump to 50,000 a week from the current level of about 13,000 seats a week.
This approval is likely to help the Jet-Etihad deal get the final approval. The Foreign Investment Promotion Board (FIPB) has already given its nod to the Jet-Etihad deal. Now, the Cabinet Committee on Economic Affairs (CCEA) and the fair trade regulator, Competition Commission of India, are to give final clearance.
Etihad Airways on 24 April 2013 announced that it agreed to subscribe to 2.72 crore new shares of Jet Airways at 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.
Jet Airways (India) reported a net loss of Rs 355.38 crore in Q1 June 2013 compared with a net profit of Rs 24.70 crore in Q1 June 2012. Revenues fell 12.34% to Rs 4064.40 crore in Q1 June 2013 over Q1 June 2012.
Jet Airways connects 20 international destinations and operates flights to and from 49 destinations in India.
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