Cash-strapped Jet Airways share hits lower circuit for 4th straight day on SFIO probe report
BusinessToday.In July 8, 2019
Shares of Jet Airways were locked in 5% lower circuit at Rs 59.70 for the fourth straight day after media reported that the government has ordered Serious Fraud Investigation Office (SFIO) probe against the grounded airline and its group companies for alleged diversion of funds, indulging in malpractices and other financial irregularities found during an inspection.
Compared to the last closing price of Rs 62.80, the Jet airways stock opened with a gap down chart pattern, at a loss of 4.94% or 3.10 points, to hit the lower circuit of the day at Rs 59.70.
Currently, at the traded volume of mere 5,671 shares on BSE and 25,697 shares on NSE, there are only sellers and no bidders (buyers) for the stock. The stock has fallen over 11 % in the last week and almost over 80% in the past one year-period.
On July 4, government has ordered an SFIO probe into the affairs of the airline after finding instances of fund diversions and large-scale irregularities. The media reported that Goyal is likely to be summoned by the SFIO, which comes under the Corporate Affairs Ministry. The cash-strapped airline is yet to reply on the clarification sought by the exchange with reference to the news.
Faced with acute financial crunch, Jet Airways stopped operations in mid-April and became the nation's first airliner to go into bankruptcy after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by SBI- led consortium, a group of 26 lenders on June 20.
Recently, on June 12, National Stock Exchange of India (NSE) declared that shares of Jet Airways (India) Ltd will be removed from daily trading of futures and options effective June 28.
The stock ended the day 4.94% down at Rs 59.70 on BSE and at a loss of 4.98% to Rs 59.15 on NSE.
Edited by Rupa Burman Roy