Jet Airways intends to tap overseas investors

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Mumbai, April 9

As the markets still look grim for a rights issue, Jet Airways , plans to tap other avenues for raising funds.

The listed airline company said its board has decided to seek shareholders approval for raising funds from overseas investors, through issue of ADRs/GDRs or FCCB or through Qualified Institutional Placements.

In a notice to the stock exchanges, Jet Airways said it would seek the approval through a postal ballot.

The private Indian carrier has been delaying its $400 million rights issue since October last year on account of unfavourable stock market conditions. In July last year, the company said the issue would hit the market in October, then it got shifted to January and then to March of 2008.

However, last week while announcing the airline's expansion plans for international destinations, Mr Naresh Goyal, Chairman, said that the company is open to all sources of funding and rights issue will follow once the "markets settle."

Jet Airways officials were unavailable for comment on the board's decision to go for alternative plans to raise funds.

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