Jet Airways share price hits upper circuit of 5% after Hinduja Group re-initiates interest to buy ailing carrier
BusinessToday.In December 23, 2019
Jet Airways share price was locked in upper circuit of 5% in trade today amid a report that the Hinduja Group was still open to buying the airline if the conglomerate would be indemnified from the airline's legal liabilities. Share price of Jet Airways rose up to 4.9% to Rs 25.70 compared to the previous close of Rs 24.50 on BSE.
Jet Airways stock hit its 52-week high of Rs 312 on January 15, 2019 and 52-week low of Rs 15.10 on October 22, 2019. The microcap stock has gained 40% in last eight sessions. It opened with a gain of 4.08% at Rs 25.50 on BSE.
According to a report in Mint, Hinduja group has shown interest in buying the carrier. "The reason we took interest was because government authorities approached us to help in survival of Jet. Even the banks approached us," the Mint report cited Gopichand P. Hinduja, co-chairman of the London-based group as saying.
In July this year, The Hinduja group initiated interest in buying the airline. Later, the group did not pursue their interest for the ailing private carrier that was grounded in April after running out of cash, Mint reported in June.
Jet Airways assets up for sale include 14 aircraft, including 10 Boeing planes, 49 per cent stake in Jet Privilege and a few buildings. The airline's lenders have also listed spares, slots and routes as the assets. The debt-laden airline has liabilities over Rs 36,000 crore.
These include more than Rs 10,000 crore of vendor dues, Rs 8,500 crore along with interest owed to the lenders, over Rs 3,000 crore in salary dues, and over Rs 13,500 crore in accumulated losses over the past three years.