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Jet Airways share hits 5% upper circuit on Synergy group stake buy buzz

BusinessToday.In     August 29, 2019

Shares of grounded Jet Airways were locked in the upper circuit of 5 per cent on the Bombay Stock Exchange (BSE) on Thursday after reports suggested that South America's Synergy Group Corp is evaluating the opportunity to buy stake in the beleaguered airline.

On the Bombay Stock Exchange (BSE), Jet Airways' stock gained as much as 4.90 per cent to Rs 41.75 apiece from Wednesday's close level of Rs 39.80 in an otherwise weak market. The S&P BSE Sensex ended 382.91 points, or 1.02 per cent, lower at 37,068.93.

The airline's share price has been on a buying spree for the last 5 days, rising over 33 per cent during the period.

Jet Airways share price gained 4.89 per cent to settle at Rs 41.85 on the National Stock Exchange (NSE).

Also Read: Synergy Group Corp plans to pick up 49% stake in Jet Airways; final date for bids extended till Aug 31

Synergy Group Corp, which owns a majority stake in Avianca Airlines, the second-largest airline in Latin America, is planning to pick up 49 per cent stake in Jet Airways, The Business Standard reported.

The crisis-hit airline closed its operations on April 17 and the lenders, led by the State Bank of India (SBI), have filed a resolution for the distressed airline. The lenders recently extended the deadline for expressions of interest (EoIs) to August 31. As of now, Jet has received EoI from three players - Anil Agarwal's family trust Volcan Investments, Panama-based investment firm Avantulo Group, and Russian fund Treasury RA Creator. However, a day later, Volcan withdrew its application.

Also Read: Jet Airways creditors' claims shoot up to over Rs 30,000 crore

Meanwhile, the debt-ridden airline's liabilities continue to mount. As per earlier claims, Jet Airways had liabilities of over Rs 26,000 crore, which has now reportedly shot up to Rs 30,558 crore. Of the total claims, the RP has admitted Rs 12,555 crore worth of claims.

Edited by Chitranjan Kumar

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