Jet shareholders approve $400 mn fund-raising plan

Mumbai: Jet Airways shareholders on Thursday approved the fund-starved airline’s plan to raise up to $400 million, or about Rs 1,920 crore, at anextra-ordinary general meeting as it desperately looks to raise money to avoid loan defaults. Burdened with a debt burden of Rs 16,000 crore, the Naresh Goyal-controlled full-service airline had last month said it would raise $400 million by diluting equity through private placement of shares with qualified institutional buyers or sale of global depository receipts (GDRs), American depository receipts (ADRs) or foreign currency convertible bonds (FCCBs).
Jet and Kingfisher Airlines, the other private full-service carrier in the country, badly require an equity infusion to remain afloat, said an aviation analyst requesting anonymity.
Jet is yet to decide on the fund-raising instrument. As reported by ET, the company has sought the government’s permission to sell shares to overseas investors as it may be hard to raise $400 million from domestic investors alone.
Any share sale will result in dilution of shareholding of the promoters who hold 80% in the company. The Jet stock slipped 0.35% to close at Rs 311 on BSE.
25/09/09 Economic Times

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Categories: Jet Airways Sep 2009