Shares of Jet Airways on Wednesday gained almost three per cent on reports that it is in talks with Etihad for financial support and is mulling a merger of Jet Privilege, the loyalty programme with the airline.
On the BSE, the scrip settled with gains of 2.74 per cent, or Rs 8.50, to end at Rs 318.60. During intra-day trades, the share rose close to 6.40 per cent on the news to hit a day’s high of Rs 313.90. While Jet Airways has a market cap of Rs 3,619 crore, more than 22 lakh shares were transacted on the BSE today.
The buying interest in the counter came after a TV channel reported that promoter Naresh Goyal is in discussions with Etihad, which holds a 24 per cent stake, wherein the latter could provide financial support.
However, in response to a clarification sought by the stock exchanges, Jet Airways said that while the report is speculative in nature, it continues to be in active discussions with various investors to secure “sustainable financing to navigate through the current headwinds and create long term growth’’. The company added that there are no discussions or decisions by the board which would require an immediate disclosure under the listing regulations.
On Tuesday, the airline had also said it was in active discussions with various investors to secure financing.
“We are in active discussions with various investors to secure sustainable financing to navigate through the current headwinds and create long-term growth. There is interest in our strong brand and confidence in our business turnaround efforts,” Jet CEO Vinay Dube had said in a letter to its passengers.
Dube pointed out the airline has reviewed its network and was deploying aircraft on more profitable routes.
“With the peak season upon us, I am optimistic about our ability to build and accelerate revenue momentum even as we continue to review and improve our network... Jet Airways will take delivery of another 6 new Boeing 737 MAX aircraft this fiscal and will leverage the same for better cost efficiency,” he said in the letter.
