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Apr 11, 2012, 12.10 PM IST
Aviation stocks climbed anything between 6-2% after media reports suggesting that foreign airlines might be allowed to pick up stakes in Indian carriers soon. While Jet Airways was up 5% to Rs 355.25, SpiceJet also climbed 3% to Rs 28.35 and Kingfisher Airlines too jumped over 6% to Rs 19.75.
Aviation stocks climbed anything between 2%-6% after media reports suggesting that foreign airlines might be allowed to pick up stakes in Indian carriers soon. While Jet Airways was up 5% to Rs 355.25, SpiceJet also climbed 3% to Rs 28.35 and Kingfisher Airlines too jumped over 6% to Rs 19.75.
According to CNBC-TV18 sources, the draft Cabinet note on the proposal is ready. The draft Cabinet note has been circulated among government ministries and comments have started coming in. The finance ministry has also lent support to this particular proposal, said sources. Sources have indicated that the inter-ministerial consultation process will not take much time now because even on the 26% FDI proposed earlier, all the ministries expressed consensus. The other issue is the Takeover Code because once the 25% stake is picked up, the company has to make another open offer of 26% and the total then goes to 51%. Sources have explained that a solution has been found and that there will be no exemption required, as far as the FDI in aviation is concerned, from the Takeover Code. However, the proposal will be designed in such a way that the spirit of the Takeover Code will be maintained and the sanctity of the cap at 49% will not be violated. The proposal is said to be designed to ensure that both these particular aspects are reflected and finalised in the Cabinet note.
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