Naresh Goyal buys 29% stake in Jet from promoter entity

Jet Airways chairman Naresh Goyal today picked up over 29 percent stake in the private carrier from another promoter entity for about Rs 1,434 crore.

Also Read: Competition Commission looking into Jet-Etihad deal

The shares were purchased from Tail Winds Ltd, a company incorporated in the Isle of Mann and wholly owned by Goyal. According to information available with the stock exchanges, Goyal purchased 2.51 crore shares, amounting to 29.13 percent stake, of Jet Airways in his personal capacity.

The scrips were bought on an average price of Rs 570 valuing the transaction to Rs 1,433.46 crore. At the end of March quarter, Tail Winds held 6.90 crore shares or 79.99 percent stake in Jet Airways, while Goyal owned 9,995 scrips, amounting to 0.01 percent holding, in the company in his personal capacity.

Forging a strategic alliance, Jet Airways has decided to sell 24 percent stake to Etihad Airways for about Rs 2,058 crore. The deal would mark the first investment by a foreign carrier in an Indian airline since the change in FDI policy. Under the proposed deal, Jet Airways would offload sell 27.26 million shares in a preferential offer to Etihad at Rs 754.74 a piece.

At the same time, Goyal's direct holding in the company would rise to 51 percent through transfer of shares from Tail Winds.

The company's Extra Ordinary General Meeting (EGM) is scheduled for tomorrow. Amid weakness in the broader market, shares of the company today inched up 0.78 percent to settle at Rs 584.25 apiece on the BSE.