According to market analysts, while the rights issue might still be on its way, a QIP is a much quicker and easier method of raising money. "Since the markets are not looking up, there are chances a rights issue will not be fully subscribed. Also, the issue would have various regulatory clearances attached, making the process more time consuming.
At the same time, if some one offers a good price, the deal would be done in one go," said Mr Siddhartha Khemka, analyst with ICICI Direct.
Jet has been planning the rights issue to fund the induction of aircraft and the acquisition of Air Sahara which it concluded last year.
"They need money now. As their debt:equity ratio is 5:1, the company needs to dilute equity to further fund its expansion plans," said another analyst from a Mumbai-based broking firm.
Mr Goyal was also supposed to dilute his holding in the company by five per cent by March 2008 in line with Securities Exchange Board of India's guidelines. As per the regulations, the promoters need to bring down their stake in the company to 75 per cent.
