Jet Air seeks FIPB nod to raise $400 m

Mumbai/New Delhi: Jet Airways has sought Foreign Investment Promotion Board (FIPB) approval to raise $400 million in the next three months. According to sources, the proposal could be considered on Friday.
This is part of its plan to meet its cash flow needs which was approved by its Board on July 24, followed by its shareholders subsequently. Depending on the route taken, the promoter’s holding, now at 80 per cent, could be diluted by 15-20 per cent, Mr M. Shivkumar, Senior Vice-President, Finance, Jet Airways, told Business Line.
According to sources, the company is mulling raising up to $400 million through the QIP route. The fund raising, sources said, is likely to happen in phases. In the first phase, it could be to the tune of $200 million to be raised from FIIs and domestic institutions.
However, Mr Shivkumar said, “It is still undecided.”
06/10/09 Shubhra Tandon/Moumita Bakshi Chatterjee/Business Line

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Categories: Jet Airways Oct 2009