Jet’s rights issue delay could hurt balance sheet

New Delhi: Jet Airways (India) Ltd’s decision to delay a much-needed $400 million (Rs1,640 crore) rights issue for a few months could lead to a cash crunch at the airline starting January as the carrier starts to take deliveries of several expensive, wide-bodied aircraft at a rate of almost one a month, say analysts who track the aviation firm’s stock.
Jet Airways’ decision, which surprised some investors, was pegged to the ongoing turmoil in the global stock and credit markets, and did not affect its stock price, which has been climbing steadily in the past months, finishing on Thursday at a year’s high of Rs845.60, up 56% from its lowest point earlier this year in March.
The Mumbai firm declined comment for this story; a spokesperson referred questions to executive director Saroj Datta, who did not respond to an email. But at a Tuesday press conference, Jet Airways chairman and promoter Naresh Goyal said: “We are all right even without the money.”
07/09/07 Mehul Srivastava and Tarun Shukla/Livemint

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Categories: Jet Airways Sep 2007