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Jet Airways share slumps 45% in 3 days to 10-year low

The Jet stocks saw surge in selling after the company announced temporary suspension of flight operations after the State Bank of India-led consortium of lenders rejected the airline's plea for emergency funds.

twitter-logo BusinessToday.In   New Delhi     Last Updated: April 22, 2019  | 17:00 IST
Jet Airways share slumps 45% in 3 days to 10-year low

Shares of crisis-hit Jet Airways continued its losing streak for the third straight session on Monday, with stocks slumping over 45 per cent in last three days on the BSE, after the airline temporarily suspended operations on Wednesday as it failed to secure emergency funds from the lenders.

Extending previous session's losses, the airline's shares plunged as much as 23.17 per cent to hit a 10-year low of Rs 126.65 on the National Stock Exchange.

In a similar trend, Jet Airways share price fell as much as 19.34 per cent in intraday trade to hit fresh 52-week low of Rs 132.20 on the Bombay Stock Exchange. Paring most of early losses, the scrip closed trade at 154.60, down 5.67 per cent.

According to data available with BSE, there was surge in volume trade with 56.18 lakh shares changing hand over the counter as compared to two-week average of 21.11 lakh shares.

The stock saw surge in selling after the company announced temporary suspension of flight operations after the State Bank of India-led consortium of lenders rejected the airline's plea for emergency funds.

Also Read:Naresh Goyal's firm had Rs 260 crore cash when financial crunch hit Jet Airways

Last week, Jet Airways had asked lenders to release an interim fund of Rs 400 crore which was turned down by the SBI, on behalf of the consortium of Indian lenders. Jet Airways owes nearly Rs 11,261 crore to banks, which includes Rs 7,251 crore from domestic lenders and Rs 4,000 crore to its foreign lenders and unpaid interest amount of Rs 1,000 crore.

"Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today," Jet Airways had said in the filing.

In the latest development, the company's Non Executive Non Independent Director Nasim Zaidi has submitted his resignations "due to personal reasons and constraints of time". Last week, Independent Director Rajshree Pathy had also resigned from the board of the cash-strapped airline.

Also Read:From SpiceJet to Air India, rivals plan to hire Jet Airways employees at lower pay

Now, all eyes will be on Jet Airways' board meeting on Tuesday where the management will discuss the way forward for the airline.

On Saturday, Jet Airways CEO Vinay Dube along with Maharashtra Finance Minister Sudhir Mungantiwar, civil aviation secretary Pradeep Singh Kharola, the airline's chief financial officer Amit Agarwal, and representatives of pilots, engineers, cabin crew and ground staff unions met Finance Minister Arun Jaitley at his residence in Delhi on Saturday. Dube said that the minister assured to look into the cash-strapped airline's issues.

Meanwhile, shares of InterGlobe Aviation (IndiGo) closed 4.22 per cent lower at Rs 1,489.10, while SpiceJet shares plunged 8.15 per cent to settle at Rs 125.15 amid surge in crude oil prices after a report suggested that the United States may stop sanction waivers to nations buying oil from Iran.

Also Read: SpiceJet signs code-share pact with Emirates; shares fall 6% as crude prices rises

Edited by Chitranjan Kumar

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