| Log in

Cabinet To Decide On Jet’s $432M Share Sale

17 November, 2009

The cabinet will decide on Jet Airways Ltd’s proposal to sell shares worth 20 billion rupees ($432 million) to foreign institutions, the finance ministry said in a statement on Tuesday.

Jet, the country’s No.2 airline by market share, is looking to raise up to $400 million to reduce its debt.

As the proposed investment was higher than the 6-billion-rupee limit that the regulatory authority on foreign investments can give clearance to, the matter was referred to the Cabinet Committee on Economic Affairs.

With a net debt of $3.1 billion on its books, about $500 million of that for its unit Jetlite, and a debt-to-equity ratio of 4 to 1 at the end of the September quarter, the company has to raise funds to deleverage its balance sheet.

Indian airlines are reeling under mounting losses as demand waned in the wake of the financial crisis last year and high operating costs force them to look at fund-raising options.

The carrier’s September quarter net loss widened to 4.07 billion rupees from 3.8 billion rupees a year ago on lower revenues.

The government approved 17 foreign investment proposals worth 11.59 billion rupees ($250 million), the ministry statement added.


Leave Your Comment
United Spirits To Sell Stock As PE Talks Fail

United Spirits To Sell Stock As PE Talks Fail

Reuters 8 years ago
United Spirits, is set to sell new shares worth about $300-350 million to...
Kingfisher Kicks Off Move To Raise Over $200M

Kingfisher Kicks Off Move To Raise Over $200M

Boby Kurian 8 years ago
Vijay Mallya-led Kingfisher Airlines Ltd has initiated talks with investment...
Providence-backed Idea Cellular Q2 PAT Falls 41%

Providence-backed Idea Cellular Q2 PAT Falls 41%

Reuters 6 years ago
Idea Cellular, India’s fourth-largest mobile phone carrier by subscribers,...
No Comments

Cabinet To Decide On Jet’s $432M Share Sale

Powered by WordPress.com VIP