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Jet Airways crashes 30% as airline halts operations; SpiceJet, IndiGo stocks hit 52-week high

BusinessToday.In     April 18, 2019

Shares of ill-fated Jet Airways nosedived 30 per cent in intra-day trade on Thursday after the crumbling airline announced that it would temporarily suspend all its international and domestic flights operations. The decision was taken after State Bank of India-led consortium of lender on Wednesday rejected an immediate Rs 400 crore demand of Jet Airways compelling it to ground operations.

Reacting to the news, Jet Airways shares declined as much as 30.28 per cent and touched an intra-day low of Rs 166.20 against the previous close level of Rs 241.85 on the Bombay Stock Exchange. According to data available with exchange, as much as 37.42 lakh shares changed hands on the counter as compared to two-week average of 15.93 lakh shares.

On the National Stock Exchange, Jet Airways share price was currently trading at Rs 176.85, down 26.47 per cent. The stock opened sharply lower at Rs 216.45 and has touched 52-week low of Rs 158.70.

In a fresh development, the lenders to the airline on Thursday said they were reasonably hopeful of a successful bidding process for stake sale, a day after the cash-starved carrier suspended its operations.

A consortium of 26 lenders led by State Bank of India (SBI), with 51 per cent stake in the debt-trapped airline, has invited bids from potential suitors. The airline will now await the bid finalisation process by SBI and the consortium of Indian lenders.

Also Read: Jet Airways shutdown: Value of JPMiles 'secure and intact', says Jet Privilege

Meanwhile, shares of rival players, SpiceJet and InterGlobe Aviation, surged between 4-15 per cent amid hopes of higher yield due to the capacity shortage caused by the crisis in Jet Airways.

Shares of SpiceJet rallied as much as 15 per cent in intra-day trade and touched 52-week high of Rs 152.60 after the low-cost carrier said it will induct six more Boeing 737-800 NG aircraft on dry lease." We will induct as many as 27 planes in a record time of fewer than two weeks and are hopeful that these inductions will help considerably ease the pressure situation," said Ajay Singh, chairman and managing director of SpiceJet in a statement.

InterGlobe Aviation, parent of IndiGo, shares jumped as much as 4.12 per cent in intra-day and touched fresh 52-week high of Rs 1,650 against previous closing price of Rs 1583.15.

Also Read: Jet Airways shutdown: Lenders express hope of successful bidding process for stake sale

Edited by Chitranjan Kumar

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