Naresh Goyal's Jet Airways stake dilution to be 10%

Mumbai: Naresh Goyal, promoter of Jet Airways, which recently got government approval to raise $400 million through a qualified institutional placement (QIP) from foreign investors, will have to divest just 10% stake in the company to raise the required funds for expansion and debt reduction, said a senior finance executive of the airline who did not want to be named.
This percentage of stake dilution is much lower than what it would have been a few months back, when the whole process of fundraising from the overseas market was initiated.
The Jet official said three months back, when the airline had approached the government for clearance to mobilise funds from foreign investors, its share price was hovering around Rs 330-340 per share. Last Thursday, the last working of the stock exchanges, the closing rate of Jet's stock was Rs 553 per share.
Goyal currently holds 80% stake in the airline through Tail Winds, that holds 79%, and 1% in his personal capacity.
In the Cabinet Committee for External Affairs (CCEA) nod that came on Friday, the government put a condition that Goyal should not sell off his stake in the airline under the guise of a QIP issue. Moreover, the controlling structure should not get altered.
29/12/09 Ramiya Bhas/Daily News & Analysis

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

Categories: Jet Airways Dec 2009