News By/Courtesy: Bhavya Choudhary | 25 Feb 2019 21:49pm IST

Jet airways, which is making loss, is likely to receive fund in future over rupees 3,000 crore post debt restructuring and investments by Etihad airways as well as NIIF. According to sources, the founder, Naresh Goyal Maitri, might remain the promoter with less than half of the existing state of 51%.

An analyst said that Etihad Airways should come as the main driver for Jet Airways as lenders and shareholders would not be able to bring in much value addition. Etihad which currently owns 24% in the full service carrier is strategic partner and is expected to pump in around rupees 1400 crore.  Wild queries send to Etihad airways and NIIF on their proposed investments in Jet airways remained and sources said that the proposed investment would hike its stake only marginally and would not trigger requirement for making an open offer for shareholders of jet airways under SEBI regulations. On February 14, Jet Airways board approved a Bank-Led Provisional Resolution Plan (BLPRP), in which lenders would become the largest shareholders in the airline.

After receiving approval from shareholders, during their meeting scheduled for February 21, part of debt would be converted into 11.4 crore shares at a consideration of Re 1  apiece as per RBI norms.  V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the restructuring exercise is likely to steer Jet Airways away from the turbulence it has been going through for many years now. “The SBI-led consortium of bankers who will be becoming the largest shareholders after the conversion of debt into equity can manage the transition of management over to Etihad plus another partner eventually,” he stated.

Section Editor: Shreyashi Tiwari | 25 Feb 2019 21:52pm IST

Tags : #JetAirways #Etihad #NIIF #Fund #Infusion #Investment

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