Mumbai, June 11 (IANS) Jet Airways scrip plunged on Tuesday following reports of breakdown in talks between the Hinduja Group and Etihad for a stake sale of the now grounded airline.
Additionally, the stocks were impacted by reports that Jet’s vendors approached the National Company Law Tribunal (NCLT) on Monday.
Other aggrieved parties, such as the employees’ union are also likely to take the airline to the NCLT, but it remains to be seen if their pleas will be admitted.
On the BSE, the airline’s scrip plunged 10.58 per cent or Rs 13.25 to Rs 111.95 on Tuesday.
“Shares of Jet Airways closed 10 per cent lower after reports emerged that Hinduja Group and Etihad Airways may no longer proceed with plans to revive the ailing carrier,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Having run out of cash, Jet Airways had suspended operations on April 17, impacting thousands of employees, lessors, vendors and passengers.
Lenders of Jet Airways led by state-run State Bank of India are currently in the process of selling the airline to recover their dues of over Rs 8,400 crore.
In response to the lenders’ call for stake sale in the airline, only Etihad Airways submitted a bid. The other three investors — private equity firm TPG Capital, Indigo Partners and National Investment and Infrastructure Fund (NIIF), which had qualified in the expression of interest (EoI), did not submit any financial proposal.
There were also two unsolicited bids from foreign investors. The Hinduja Group in May said that it was exploring options to buy a stake in the crisis-hit airline.
“Hinduja Group is evaluating the Jet Airways opportunity,” a spokesperson had said.