After the mega deal with Etihad, the promoter group of Jet Airways is likely to offload 9.8 per cent of their stake to meet the SEBI’s minimum public shareholding norms of 25 per cent.
According to Thursday’s closing price of Rs 635.20, this 9.8 per cent stake in Jet Airways will be valued at Rs 707.2 crore.
The deadline to meet the minimum public shareholding norms is June this year.
Currently, promoter shareholding in Jet Airways stands at 80 per cent. The preferential allotment to Etihad would result in an increase in the equity base of the company.
Subsequently, the shareholding of existing promoters would fall to 60.8 per cent.
This combined with its strategic partner Etihad’s stake of 24 per cent would take the promoter group holding to 84.8 per cent.
According to SEBI’s minimum public shareholding norms, the promoter group holding is capped at 75 per cent. This necessitates the offloading of 9.8 per cent stake by Jet Airways’ promoter group through either offer-for-sale (OFS) or through Institutional Placement Programme.
25/04/13 The Hindu
