The Jet Airways stock rose in early trade today amid a report that the cash-strapped airline was looking to raise funds. The stock rose as much as 2.9 percent to 308.90 compared to its previous close of 300.45 level. The stock has been gaining for the last two days and has risen 7.98% during the period. It is down 48.20% during the last one year and 63.22% since the beginning of this year.
A report by the Financial Express said the airline was in talks with non-banking financial companies to raise Rs 1,500 crore to Rs 2,000 crore against its forward sales. Hence, all the bookings done through credit cards will directly accrue to the concerned NBFC.
The airline which has debt of over Rs 11,000 crore from banks, had said on August 13 that it was looking at all options to raise funds.
"We have been evaluating various funding options to meet the liquidity requirements on priority," the airline had said in a statement after stock exchanges sought clarification.
Beginning August, the 25-year-old airline has been facing cash crunch after which it asked its senior management to take a 25 per cent pay cut and proposed an up to 25 per cent reduction in the wages of other employees, including engineers and pilots.
However, after protests by these categories of employees, the airline was forced to put the move on hold.
In a surprise move on August 9, 2018, the airline deferred announcement of its Q1 earnings after which its stock closed 8.39% or 25 points lower at 276.40 on the BSE.
Today, the airline said its board would meet on August 27 to approve financial results for the quarter ended June 30.