Jet Air plans to dilute 10% stake

Jet Airways India 's chairman Naresh Goyal is planning to dilute 10 per cent stake of the company in favour of foreign institutional investors and private equity players, K G Vishwanath, general manager-finance, said.

"The decision was taken about three weeks ago," Vishwanath said, but declined to disclose the price at which the stake will be sold.

The stake sale will be conducted prior to the rights issue of equity shares through which the company plans to raise about $400 million.

Vishwanath said the rights share issue will be launched when market conditions are more favourable. Valuation is being determined, he added. "The extent of stake dilution by the promoter will be dependent on the valuation," he said.

Goyal currently holds close to 80 per cent stake in the company. In January, Jet Airways' board authorised the management to raise up to $800 million through qualified institutional placement and other modes, including the $400 million rights share issue.

Jet Airways shares closed at Rs 550.35 on NSE today, up 7 per cent from Monday.