Shares of Jet Airways today ended higher by 93.35 per cent at Rs 54 per share on BSE after days of continuous fall on Thursday. The scrip had opened at Rs 30.20 against the previous close of Rs 33.10 and hit an all-time low of Rs 27 per share. Later the shares of debt-stricken airline recovered and rallied to touch a high of Rs 77.35 per share. On the NSE, shares of Jet Airways surged 122 per cent to settle at Rs 73.55 per share after plunging to an all-time low of Rs 26.55 in the early morning trade.
According to a market expert, the sharp rally in Jet Airways, along with few other stocks, was seen because of short covering. The shares of Naresh Goyal-founded airline had tumbled 78 per cent in the last 13 trading sessions. Jet Airways’ troubles started in 2018 when the company failed to make payments to the lenders. The airline has debt obligations of over Rs 10,000 crore to its vendors and salary dues of over Rs 3,000 crore.
As the airline struggled to survive, Naresh Goyal and his wife Anita Goyal had to step down as the board members as on March 25, 2019, which was a part of the resolution plan approved by the Jet Airways board. Following this, the airline announced a temporary suspension of its operations on 17 April 2019.
A consortium of 26 bankers led by the State Bank of India earlier this week took the airline to the National Company Law Tribunal (NCLT)for the speedy recovery of their dues of over Rs 8,500 crore. The tribunal will begin hearing on the matter from Thursday. State Bank of India had said that the lenders were forced to drag the airline to NCLT as they had waited long for the resolution plan to materialise. Moreover, one potential investor in Jet Airways also demanded SEBI exemption which will work better with Insolvency and Bankruptcy Code in the picture.
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