Airline shares up on Jet- Etihad deal

SpiceJet rose 18.24%, while Kingfisher Airlines Ltd gained less than a per cent

Shares of aviation companies rose on Thursday afte r after Gulf carrier Etihad Airways said it is taking almost a quarter stake in Jet Airways, which rose as much as 20 per cent in the morning. Investors cheered the deal as Etihad will buy Jet shares at Rs 754.74 per share, a 19 per cent premium to Thursday's closing price of Rs 632. Based on Tuesday's closing price, the deal is happening at a 31.7 per cent premium. The deal sets a valuation benchmark for further investments in Indian airlines, with budget carrier SpiceJet Ltd frequently the subject of stake sale reports. SpiceJet rose 18.24 per cent, while Kingfisher Airlines Ltd gained less than a per cent.