Jet Airways shares have more than tripled since they hit a 52-week low of Rs 13 on March 26.
Shares of the defunct airline - Jet Airways - were locked in a 5 per cent upper circuit at Rs 42.20 on the National Stock Exchange after the company on Saturday informed exchanges that its creditors agreed to sell the carrier under a multi-million dollar resolution plan. Jet Airways would be acquired by an investor consortium under a multi-million dollar resolution plan approved by the carrier's creditors. Jet Airways shares were locked in a 5 per cent upper circuit for an eighth session in a row. The stock in the last eight sessions has rallied 47 per cent.
The plan submitted by a consortium of London-based Kalrock Capital and UAE-based businessman Murari Lal Jalan comes after months of talks over the airline's future and was confirmed in a regulatory filing, which gave no details of the deal.
The new owners had agreed to pump in Rs 1,000 crore as working capital for the revival of the airline. Another Rs 1,000 crore will be given to creditors over a period of five years, news agency Reuters reported citing sources close to the situation.
Jet - which operated a fleet of more than 120 planes serving dozens of domestic destinations and international hubs such as Singapore, London and Dubai - was forced in April 2019 to ground all flights, crippled by mounting losses as it attempted to compete with low-cost rivals.
After Jet halted operations at least 280 slots were vacant in Mumbai and 160 in Delhi, which were then given to its rivals. The revival plan is also based on getting some of these slots back.
Jet Airways shares have more than tripled since they hit a 52-week low of Rs 13 on March 26, data from stock exchanges showed.
As of 11:55 am, Jet Airways was locked in upper circuit with pending buy orders of 15,69,836 shares on the NSE.
