Jet Airways submits clarification to FIPB

New Delhi: Private carrier Jet Airways has submitted a clarification to the government after it deferred the airline's plan to raise $400 million through a share sale to foreign institutions .
Talking to reporters on the sidelines of the Hong Kong- Guangdong business conference in New Delhi, Jet chairman Naresh Goyal declined to disclose any further detail on the proposed equity investment through the QIP route.
The Foreign Investment Promotion Board (FIPB), had on October 1, deferred a decision on approving the proposal, after the Civil Aviation Ministry said the airline would breach the FDI cap of 49 per cent if it was allowed to go ahead.
Official sources had then said that Jet needed to rework its proposal to bring its foreign holdings down so that the FDI norms were not violated.
In August, Goyal had told the company's annual general meeting that the airline has sought government's permission to dilute up to a 20 per cent stake and had already applied to the FIPB. However, he had not specified any time-frame for it.
The largest domestic airline company had then also announced it plans to raise $400 million through QIP route. According to the shareholding pattern available with the National Stock Exchange, the airline has 79.99 per cent non-resident Indian holdings as on June 30 this year.
27/10/10 Economic Times

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Categories: Jet Airways Oct 2010