Jet Airways share price falls 20% on report bidders not keen to follow up on their offers
BusinessToday.In May 2, 2019
Jet Airways share price fell in early trade today after a media report said bidders for the struggling airline had not yet shown interest in following up on their offers. Jet Airways share price fell up to 20.41% to 122 level compared to previous close of 153.30 on BSE today.
At 10:52 am, Jet Airways share was trading 17% or 26 points lower at 127.15 on BSE. Jet Airways share price has been falling for the last 4 days and has fallen 25.84% in the period.
Jet Airways share price opened at a loss of 8.68% at 140 level. Jet Airways share logged Rs 23.24 crore turnover with 18.24 lakh shares changing hands on BSE.
Jet Airways market capitalization fell to Rs 1,458 crore on BSE today. Jet Airways investors have lost Rs 1678 crore in market capitalization since the beginning of this year.
On January 1, 2019, market capitalization of the airline stood at Rs 3,136 crore on BSE.
Jet Airways has lost 85% in market capitalization since its recent peak level of Rs 9,889 crore (January 5,2018) on BSE.
Three of the four qualified bidders - Etihad Airways, TPG Capital and Indigo Partners - have not signed non-disclosure agreements necessary for conducting due diligence, with just days left now to submit their final bids, the Economic Times newspaper reported, citing sources.
The bidders have until May 10 to submit their offers, but stakeholders are not hopeful, the paper said.
Before its grounding, Jet had the biggest share of India's outbound international air traffic, carrying 12 per cent of the 7.8 million passengers headed overseas in the Oct-Dec quarter, down from 14 per cent a year earlier, data from the Directorate General of Civil Aviation showed.
The total number of passengers travelling overseas with Jet fell 10 per cent during the last quarter of 2018 even as the outbound travel market grew by about 5 per cent.
Edited by Aseem Thapliyal