Jet Airways slips on audit, stake sale buzz
Jet Airways tripped 2 per cent on Monday morning after reports that aviation regulator DGCA is set to conduct a financial audit of the Naresh Goyal-promoted Jet Airways.
The airline’s fiscal conditions are under strain due to the surging jet fuel prices and low fares.
The scrip was down 1.95 per cent at Rs 271 at around 10 am. The BSE Sensex was down 282 points, or 0.74 per cent, at 37,587.
Cash-strapped Jet Airways has also initiated a formal stake sale process to raise $350-400 million from global private equity firms. Approaches have been made to bulge-bracket funds, including Blackstone, TPG and Indigo Capital Partners, according to an ET report.
A global investment bank has already been roped in to help Jet’s founding Chairman Naresh Goyal raise funds. The airline is also trying to monetise the frequent flyer programme it co-owns with partner Etihad Airways. A meeting is scheduled on Monday to firm up plans on this. The programme is valued at $1.1 billion (Rs 7,601 crore).
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Via:: Economic Times – Stocks