Jet Airways stock hits upper circuit for third straight day; gains 115% from 52-week low
BusinessToday.In January 2, 2020
Shares of Jet Airways were locked in the 5 per cent upper circuit for third straight day on Thursday amid a report that Hinduja Group was preparing to bid for the debt-laden carrier. The seventh meeting of Committee of Creditors (CoC) of the grounded airline is scheduled to be held on January 2. The debt-laden company, in an exchange filing, said that the CoC would seek fresh Expression of Interest (EoI).
Continuing its gaining streak, Jet Airways share price gained 5 per cent to hit an upper circuit of Rs 32.60 on the BSE against previous closing price of Rs 31.05. The share price of Jet Airways (India) has rallied 115 per cent against its all-time low price of Rs 15.10 on October 22, 2019. The stock had hit 52-week high of Rs 312 on January 15, 2019.
In a similar trend, Jet Airways shares ended 4.92 per cent higher at Rs 32 on the National Stock Exchange (NSE). The stock has opened at Rs 32 against previous closing price of Rs 30.50.
According to a Bloomberg report, the UK-based Hinduja Group, led by Gopichand Hinduja and Ashok Hinduja, was planning to submit an expression of interest (EOI) by January 15. The expression of interest will signal the UK-based group's intent to make a formal offer. Hinduja is seeking a partner to bid, Bloomberg reported.
In July last year, Hinduja Group had expressed interest to buy stake in the airline. The group, however, did not pursue their interest for the ailing private carrier.
The troubled airline, which suspended its operations on April 18, 2019, is currently undergoing resolution process under the Insolvency and Bankruptcy Code (IBC).
Last month, the National Company Law Tribunal (NCLT) had directed the CoC to speed up its decision about seeking fresh expressions of interest (EOI) in view of 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.
Meanwhile, the BSE Sensex ended 320 points, or 0.78 per cent, higher at 41,626.
By Chitranjan Kumar