Jet Airways shares on Friday fell over 5 per cent on the bourses as the company's offer to sell over 43.17 lakh shares via offer for sale (OFS) route got subscription for just 70 per cent.
According to the National Stock Exchange data, the issue received 29,86,022 bids against the 43,17,697 shares on offer.
Jet Airways-promoter Tail Winds had set the floor price at Rs 510 a share for 5 per cent stake-sale through the OFS route which was aimed at reducing promoters' stake to meet the Securities and Exchange Board of India's (Sebi) guideline of 25 per cent public float.
Reacting to the news, shares of Jet Airways opened on a weak note at Rs 508.80, then slumped 5.66 per cent to an intra-day low of Rs 498.60 on the Bombay Stock Exchange.
Similar movement was witnessed on NSE as well, where the stock opened at Rs 505, then fell 5.59 per cent to an intra-day low of Rs 498.90.
Jet Airways Chairman Naresh Goyal on Thursday picked up nearly 37 per cent stake in the company from the main promoter entity Tail Winds for about Rs 1,670 crore and took his direct stake in the private carrier to about 66 per cent.
Last week, Goyal had purchased 29 per cent stake from Tail Winds for about Rs 1,434 crore.
According to information available with the stock exchanges, Goyal purchased 3.18 crore shares, amounting to 36.85 per cent stake, of Jet Airways in his personal capacity. The scrips were bought on an average price of Rs 525 valuing the transaction to Rs 1,670.3 crore.
The transactions are part of Jet Airways' plan to make Goyal its main promoter with at least 51 per cent stake in his personal capacity. Jet's board and shareholders have already approved allotment of shares on preferential basis for sale of 24 per cent stake to Abu Dhabi-based Etihad Airways.
After the completion of Jet-Etihad deal, Jet has proposed to have 51 per cent stake with Goyal, 24 per cent with Etihad and remaining 25 per cent with the public.
With inputs from PTI