Mumbai: Mired in controversy, the Rs 2060 crore deal between India's largest private airline company Jet Airways and Abu Dhabhi-based Etihad Airways is proving to be a trap for large investors (both foreign and local) who had been betting big on the deal while hiking their stakes in the former when shares were trading strong.
Talks of the deal were brewing since the beginning of the year. Investors flocked towards the galloping counter as Etihad had agreed to pay over 30% premium for acquiring a stake of 24% in the Indian company.
During the first half of CY13, foreign institutional investors (FIIs) scaled up their holdings in Jet from 4.27% in December, 2012 to 7.92% as on 30 June. While domestic institutions (DIIs) too did not lose the opportunity of riding on the deal and increased their exposure by around a percentage point to 8.16%.
All this happened during a period which saw Jet Airways' promoter Naresh Goyal diluting his stake in the company by 5 percentage points from 80% to 75%. And, average price of Jet Airways' stocks hovered around Rs 550 a piece.
22/07/13 Chandan Kishore Kant/Business Standard
To Read the News in full at Source, Click the Headline
Talks of the deal were brewing since the beginning of the year. Investors flocked towards the galloping counter as Etihad had agreed to pay over 30% premium for acquiring a stake of 24% in the Indian company.
During the first half of CY13, foreign institutional investors (FIIs) scaled up their holdings in Jet from 4.27% in December, 2012 to 7.92% as on 30 June. While domestic institutions (DIIs) too did not lose the opportunity of riding on the deal and increased their exposure by around a percentage point to 8.16%.
All this happened during a period which saw Jet Airways' promoter Naresh Goyal diluting his stake in the company by 5 percentage points from 80% to 75%. And, average price of Jet Airways' stocks hovered around Rs 550 a piece.
22/07/13 Chandan Kishore Kant/Business Standard
