Jet Airways nosedives over 18% on reports it may temporarily shut down ops

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Jet Airways stock plunged as much as 18.56 per cent to Rs 213.20 in the afternoon trade on Tuesday after reports suggested the airline may shut down its operations temporarily. Reports also suggested that founder Naresh Goyal has withdrawn from the bidding process.

At 01:05 pm, shares of the company were trading at Rs 236.40 apiece on BSE, down 10 per cent.

Business Standard had earlier reported that Jet Airways was headed towards a total grounding and a decision could be taken as early as Tuesday after a meeting of its board of directors. Left with no cash, a seven-plane fleet and fuel to run operations only till Tuesday afternoon, the end is imminent, said sources close to the development. “Jet cannot be saved now. It’s on the ground,” another source in the know said. READ THE FULL STORY

SBI, which has been at the forefront of the resolution plan, said late on Monday evening that the expressions of interest for buying stake in Jet were being vetted by a legal team and prospective bidders would be shortlisted by SBI Caps soon. “The proposed equity conversion by banks, if any, will be undertaken as a transitory mechanism to facilitate the bidding cum sale process,” SBI said in a release.

Other aviation stocks SpiceJet and IndiGo advanced in the trade. While SpiceJet was trading nearly 8 per cent higher at Rs 128 apiece, IndiGo (Interglobe Aviation) was ruling nearly 4 per cent higher at Rs 1,530, its 52-week high.

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