Jet Airways gains 5% after Jalan-Kalrock infuses Rs 100 cr, aims to take off next year

From its 52-week of Rs 99, the stock price of Jet Airways crashed 43.6 percent.

The share price of Jet Airways zoomed 5 percent to Rs 55.8, hitting the upper circuit on September 29, as the Jalan-Kalrock consortium infused Rs 100 crore into the grounded carrier, completing its financial commitment of Rs 350 crore.

“With this infusion, the Jalan-Kalrock consortium has fulfilled its total financial commitment of Rs 350 crore equity as per a court-approved resolution plan, and all commitments by JKC now stand fulfilled to take control of the iconic airline,” said a release issued by the consortium.

"The consortium's strategy to revive the airline remains unaltered. The new promoters are determined to re-establish the operations of the airline up and running in 2024,” JKC added.

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Once the largest private airline in India, Jet Airways went down in 2019, when the low-cost carrier encountered severe cash crunch, which eventually forced it to file for bankruptcy protection. The airline had an outstanding debt of around Rs 18,000 crore, which pushed the creditors to initiate legal proceedings for recovery.

In January 2023, the National Company Law Tribunal (NCLT) approved the transfer of Jet Airways to the Jalan-Kalrock consortium, led by Murari Lal Jalan and London-based Kalrock Capital. However, the consortium faced a series of blocks from creditors because of resolution plans.

As of June 2023, Naresh Goyal owned just a shy of 25 percent in the airline and Punjab National Bank held 26.01 percent, or 2.96 crore shares. Insurance major LIC has a stake of 2.14 percent and international carrier Etihad Airways controls 24 percent in the company. Retail investors had around 21 percent stake in the airline.

Shares of Jet Airways have slipped 4.94 percent over the past six months, extending their 41.48 percent fall over the last one year. From its 52-week of Rs 99, the stock price of Jet Airways crashed 43.6 percent so far.

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