Jet Airways India Ltd., the carrier part-owned by Etihad Airways PJSC, is seeking to raise about $300 million to fund expansion on international routes, people with knowledge of the matter said.
Jet Airways, India’s second-largest airline by passengers, has started talks on a potential equity fundraising from investors other than Etihad, the people said, asking not to be identified because the information is private. The company, which has a market value of 41.9 billion rupees ($619 million), aims to sell stock at a premium to its current share price, according to one of the people.
Years of losses and a high debt load are severely restricting Jet Airways’s ability to expand its fleet aggressively, Mumbai-based brokerage IIFL Holdings Ltd. wrote in a Sept. 26 research report. The market share of Jet Airways has fallen in the past four years as the number of local carriers almost doubled to 11, according to data from the aviation regulator.
“New dynamics are emerging, which could see Jet Airways seeking funds outside of Etihad and could include strategic investors,” Kapil Kaul, South Asia chief executive officer at CAPA Centre for Aviation, said by phone Wednesday. “However, valuation will remain a challenge.”
07/12/16 George Smith Alexander & P R Sanjai/Bloomberg
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Jet Airways, India’s second-largest airline by passengers, has started talks on a potential equity fundraising from investors other than Etihad, the people said, asking not to be identified because the information is private. The company, which has a market value of 41.9 billion rupees ($619 million), aims to sell stock at a premium to its current share price, according to one of the people.
Years of losses and a high debt load are severely restricting Jet Airways’s ability to expand its fleet aggressively, Mumbai-based brokerage IIFL Holdings Ltd. wrote in a Sept. 26 research report. The market share of Jet Airways has fallen in the past four years as the number of local carriers almost doubled to 11, according to data from the aviation regulator.
“New dynamics are emerging, which could see Jet Airways seeking funds outside of Etihad and could include strategic investors,” Kapil Kaul, South Asia chief executive officer at CAPA Centre for Aviation, said by phone Wednesday. “However, valuation will remain a challenge.”
07/12/16 George Smith Alexander & P R Sanjai/Bloomberg
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