The shares of Jet Airways climbed 4.86% on Tuesday after the lenders' body of the bankrupt airline said it will seek fresh bids for the company.
The private sector airline filed a regulatory statement that read, "The CoC passed the resolution to issue fresh invitation of Expression of Interest for the corporate debtor in the e-voting concluded on December 22, 2019". This was concluded at the 6th meeting conducted by the creditors of the airline, held on December 17.
Following the announcement, the shares of Jet Airways rose 4.47% with the opening bell. Later, the stock touched an intraday high of Rs 26.95, rising 4.86% today, with 0.22 lakh and 0.34 lakh shares changing hands on BSE and NSE.
Jet Airways' stock, has traded in a narrow range of Rs 0.15 today and market cap of the airline stood at Rs 306 crore. The share price was locked at 5% upper circuit, with no offers and almost 0.94 lakh and 1.73 lakh buyers bidding on BSE and NSE, respectively.
The stock trades higher than 5, 20 and 50-day moving averages but lower than its 100 and 200-day moving averages.
The cash strapped airline, that suspended its operations since April 18 2019, is currently undergoing resolution process under the Insolvency and Bankruptcy Code (IBC).
Earlier this month, the National Company Law Tribunal (NCLT) had directed the CoC body to speed up its decision about seeking fresh Expressions of Interest (EOI) in view of fresh interests being shown for the grounded airline.
The tribunal had also approved the extension of Jet Airways insolvency resolution period by 90 days, as the consortium of 26 banks led by the SBI, failed to find a new buyer for the airline during the mandated 180-day period.
Synergy Group, the sole potential bidder for Jet Airways so far, had sought more time to take a decision on investing in the grounded airline.
Jet Airways' share price rose 4.99% to Rs 25.25 apiece on Monday. The share of the cash-strapped airline has been gaining for last 9 days and risen 46.47% returns in the period. The stock has risen 15% in one month but lost over 90% year-to-date.