Jet Airways shares crash almost 18% after stock exchanges slap trading restrictions
New Delhi: Shares of Jet Airways Thursday cracked nearly 18 per cent after stock exchanges decided to impose restrictions on its stock trading from June 28. The scrip plunged 16.71 per cent to close at Rs 91.95 on the BSE. During the day, it dropped 23.18 per cent to Rs 84.80 — its multi-year low.
On the NSE, shares tumbled 17.72 per cent to close at Rs 90.75. In terms of traded volume, 35.05 lakh shares were traded on the BSE and over three crore shares changed hands on the NSE during the day.
Led by the sharp fall in the scrip, its market valuation fell by Rs 209.47 crore to Rs 1,044.53 crore on the BSE. Jet Airways shares have been falling for ninth consecutive days, tumbling 39 per cent on the BSE.
Stock exchanges will impose restrictions on trading in Jet Airways shares from June 28 as part of preventive surveillance measures to curb excessive volatility, according to a circular.
The cash-starved company suspended operations in April and lenders are working on ways for revival of the airline.
In a circular, NSE said shares of the company would be shifted from "Rolling Segment to Trade for Trade Segment, wherein the settlement in the scrip will take place on gross basis with 100 per cent upfront margin and 5 per cent price band".
There are restrictions in trading of shares that are under Trade for Trade Segment. The decision has been taken jointly by the exchanges and would be effective from June 28, it said.
According to the circular, the company has failed to provide prompt responses to queries of exchanges regarding various rumours.
Meanwhile, the National Company Law Tribunal (NCLT) Thursday adjourned the hearing on Jet Airways insolvency case to June 20.
By asking the two operational creditors--Shaman Wheels and Gaggar Enterprises--who have taken Jet Airways to NCLT, to again serve legal notices to the grounded airline, the tribunal is yet to admit the bankruptcy pleas.
These two companied had on June 10 dragged the airline to the NCLT seeking bankruptcy proceedings. The airline, which was grounded on April 17, owes Rs 8.74 crore to Shaman Wheels and Rs 53 lakh to Gaggar Enterprises.
Jet Airways owes more than Rs 8,000 crore to a consortium of banks led by the State Bank of India, which now run the airline, while it has a much larger debt pile by way of accumulated losses to the tune of Rs 13,000 crore and vendor dues of over Rs 10,000 crore and salary dues of over Rs 3,000 crore.
The banks have appointed SBI Capital Markets as the investment banker to find an investor to scout investors.
Bankers, after taking over the airline late March had invited bids on April 8 to sell up to 75 percent stake in the crippled carrier that formally stopped operations on April 17.
Though it had received initial bids from parties- Ethihad Airways, private equity players TPG Capital and Indigo Partners, and the sovereign wealth fund NIIF, none of them chose to submit the final bids.