Jet Airways defers rights issue

Mumbai: Jet Airways has deferred its $400 million rights issue to March. Prior to this, Jet Airways chairman Naresh Goyal who holds 80 per cent stake in the company would dilute 5 per cent of his holding to comply with SEBI's guidelines and to augment resources for the rights issue.
"We are still on track. The rights issue will be launched in this quarter," Goyal said while denying any delay. In July the airline had planned to launch the issue in October but deferred it to January due to unfavorable market conditions.
Goyal will need to mop up nearly $300 million as his contribution for the rights issue and is talking to financial institutions to raise a loan. The five per cent equity dilution would augment around $120 million and this amount could be utilized to fund the rights issue. "As per regulatory requirement, I have to reduce my holding to 75 per cent before March 2008 end," Goyal said. The rights issue is planned to fund induction of aircraft and Air Sahara acquisition last year.
06/01/08 Lalatendu Mishra/Hindustan Times

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Categories: Jet Airways Jan 2008