CCEA may take up Jet's $400-m fund-raising plan

New Delhi: The cabinet committee on economic affairs (CCEA), the apex body for deciding investment proposals, on Thursday may take up Jet Airways’ proposal to raise $400 million (Rs 2,000 crore) through sale of shares to institutional investors, said an aviation ministry official.
The proposal of the struggling airline had been stuck for more than three months since the civil aviation ministry objected to the likely breaching of foreign direct investment limit in the company. “We have made it clear that the airline would have to comply with the 49% FDI cap within three years,” an official in the aviation ministry said on condition of anonymity.
The fresh issue of equity may bring down the promoter Naresh Goyal’s holding in the company to 42% from 80%, and if all shares are bought by foreign funds it could breach the FDI limit. “The approval to QIP would be conditional with no change in controlling structure.
23/12/09 Nirbhay Kumar/Economic Times

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Categories: Jet Airways Dec 2009