Cabinet to decide on Jet's $432 mn share sale

New Delhi: The Union Cabinet will decide on Jet Airways Ltd's proposal to sell shares worth 20 billion rupees ($432 million) to foreign institutions, the finance ministry said in a statement on Tuesday.
Jet, the country's No 2 airline by market share, is looking to raise up to $400 million to reduce its debt.
As the proposed investment was higher than the 6-billion-rupee limit that the regulatory authority on foreign investments can give clearance to, the matter was referred to the Cabinet Committee on Economic Affairs.
With a net debt of $3.1 billion on its books, about $500 million of that for its unit Jetlite, and a debt-to-equity ratio of 4 to 1 at the end of the September quarter, the company has to raise funds to deleverage its balance sheet.
17/11/09 Reuters/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Jet Airways Nov 2009