Jet Airways jumps 5% as Hinduja-Etihad consortium joins race to buy airline

Jet Airways shares were locked at 5 percent upper circuit at Rs 70.95 on July 1 after reports indicated that Hinduja Group and Etihad Airways consortium is in the race to buy cash-strapped airline.

The stock lost 75 percent in the last three months due to suspension of operations amid a cash crunch.

A consortium of diversified conglomerate Hinduja Group & Etihad Airways has shown interest for bidding for Jet Airways under the Insolvency and Bankruptcy Code (IBC), four independent sources with knowledge of the matter told Moneycontrol.

The Tata Group is currently exploring the possibility of a potential bid but hasn't taken a final call yet. Qatar Airways is also in exploratory mode and may join the fray if it finds a suitable domestic partner, these sources added.

Moneycontrol had reported earlier on June 28 that the employee consortium had also joined hands with London-based AdiAgro Aviation to bid for 75 percent in the airline through the IBC process.

AdiGro Aviation Founder Sanjay Viswanathan said the consortium will bid for 75 percent stake, of which the London-based firm will take 49 percent, and the rest will be with the employees' consortium.

Etihad holds a 24 percent stake in Jet Airways and based on exchange filings is not classified as part of the promoter group of the airline and falls in the public shareholder category.