Tuesday, February 19, 2019

Will existing share holders subscribe to Jet Airways rights offer?

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Jet Airways is consider raising Rs 4,000 crore through a rights issue if the Securities and Exchange Board of India denies an exemption to Etihad Airways  from making an open offer in lieu of raising its stake in the cash-strapped carrier.

The question is whether the existing share holders who have already burnt their fingers having invested and stayed put in the company will take the risk of pouring more money, however attractive the offer may be.

Jet airways closed flat at Rs 233 in yesterday's trading.

Jet Airways came public in 2005, at Rs 1100. The stock is one of he worst value destroyer over the years.

As of now the best option for Jet Airways promoters to sell 90% of the stake to strong player with deep pocket. Otherwise Jet Airways too will collapse like King Fisher.

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