Jet Airways share hits upper circuit for 7th straight day, surges 54% in 10 days
BusinessToday.In December 26, 2019
Shares of crisis-hit Jet Airways (India) continued gaining streak on bourses, with stock hitting upper circuit of 5 per cent for the seventh straight day on the Bombay Stock Exchange (BSE), as the creditors of the grounded airline decided to seek fresh initial bids for the company. The stock was trading at its highest level since September 30, 2019.
In the last 10 trading sessions, Jet Airways' share has surged 54 per cent from the level of Rs 18.39 on December 11. In contrast, the benchmark S&P BSE Sensex has gained 2.5 per cent during the same period.
Extending its rally, Jet Airways share was locked in 4.82 per cent upper circuit at Rs 28.25 on the BSE against previous closing price of Rs 26.95. In contrast, the BSE Sensex was trading 295 points, or 0.71 per cent, lower at 41,165. The Jet Airways share price was trading 87 per cent higher than its all-time low price of Rs 15.10, touched on October 22, 2019. The stock has hit 52-week high of Rs 312 on January 15, 2019.
In a similar trend, Jet Airways shares were trading 4.91 per cent higher at Rs 27.80 per cent on the National Stock Exchange (NSE).
The debt-laden company, in an exchange filing, said that the Committee of Creditors (CoC) would seek fresh Expression of Interest (EoI). "The CoC passed the resolution to issue fresh invitation of Expression of Interest for the corporate debtor in the e-voting concluded on December 22, 2019," the airline said in a filing to the BSE on Monday.
The troubled airline had suspended its operations since April 18 2019, due to acute fund shortage. Jet Airways is the seventh airline to go down since May 2014. In the last five years, airlines like Air Pegasus, Air Costa, Air Carnival, Air Deccan, Air Odisha and Zoom Air have all gone belly up.
The airline is currently undergoing resolution process under the Insolvency and Bankruptcy Code (IBC).
Earlier this month, the National Company Law Tribunal (NCLT) had directed the CoC body to speed up its decision about seeking fresh expressions of interest (EOI) in view of fresh interests being shown for the grounded airline. The tribunal had also approved the extension of Jet Airways insolvency resolution period by 90 days, as the consortium of 26 banks led by the State Bank of India, failed to find a new buyer for the airline during the mandated 180 day period.
Synergy Group, the sole potential bidder for Jet Airways so far, had sought more time to take a decision on investing in the grounded airline.
By Chitranjan Kumar