Jet Air's rights issue hits third air-pocket

India's largest private sector airline Jet Airways has postponed its $400 million (Rs 1600 crore) rights issue slated for March this year by three or four months, the third postponement since the board approved it in June, owing to poor market sentiment.
Goyal-promoted airline had postponed the rights issue in September and December last year.
The carrier has also postponed plans to raise another $400 million through a Qualified Institutional Placement (QIP), a private placement of shares with institutions approved by the market regulator, to September.
Both postponements have raised questions about the airlines' ability to retire its debt, finance its fleet acquisition plan and dilute the promoters' holding from 80 to 75 per cent to meet regulatory requirements.
Jet, which acquired Sahara Airlines (now JetLite) for Rs 1,450 crore last year, currently has a debt burden of more than Rs 9,000 crore and requires $2 billion for its fleet acquisition and expansion plans.
06/03/08 Manisha Singhal/Business Standard

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Categories: Jet Airways Mar 2008