Jet Airways eyes GDR to raise $350 m

Naresh Goyal-promoted Jet Airways, India’s leading full service airline, plans to raise around $350 million capital to bridge losses incurred primarily during last one year.
The company may look at a global depository receipts (GDR) issue, according to equity analysts tracking aviation industry.
Promoters hold 80 per cent in the company.
On Wednesday, the company informed BSE that “its board proposes to consider various options for raising of additional capital,” and it would meet on July 24 to take a final call. Jet Airways, which has incurred losses amounting to Rs 600 crore in last 18 months, mainly due to high jet fuel prices and low occupancy on its flights.
Analysts say that raising capital through qualified institutional placements (QIP) and GDR has become quiet easy now, so there are all possibilities that the company might go for these options.
22/07/09 Rupesh Subhash Janve/mydigitalfc.com

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Categories: Jet Airways Jul 2009