India Markets closed

Expect Buyer for Jet by End of May: SBI Chief After Goyal’s Exit

The State Bank of India (SBI) on Monday, 25 March, said it expects investors for the cash-strapped Jet Airways by the end of May. It further added that promoter Naresh Goyal has the option of increasing his stake in the beleaguered airline to beyond 25 percent in the future.

A consortium of lenders, led by the SBI, has agreed to put in Rs 1,500 crore immediate funding by acquiring 51 percent stake in the company through issue of fresh shares worth Rs 11.4 crore.

Goyal’s stake will come down to 25 percent from 50 percent, while the stake of Abu Dhabi’s Etihad Airways, formerly 24 percent, will come down to 12 percent.

‘Bidding Process to Be Completed By 31 May’

The bidding process will be initiated by lenders for sale to new investor(s). As per the resolution plan, the process was expected to be completed in the June quarter.

However, SBI Chairman Rajnish Kumar told CNBC TV18, “June is too late. My expectation is 31 May. Market is open for everyone whosoever wants to come in. There will be expression of interest which will be given by 9 April, and binding bid by 30 April.”

"“It could be financial investor, it could be airline... including Naresh Goyal himself or Etihad. Nobody is barred from bidding or taking over the airline as per the rule.”" - Rajnish Kumar

Jet Airways Founder and Chairman Naresh Goyal and his wife Anita Goyal stepped down from the board of the ailing airline following reduction in their stake to 25 percent as per the resolution plan formulated by SBI-led domestic lenders.

After weeks of speculations and uncertainties over the future course of Jet Airways, which has grounded over 80 planes due to financial woes, an Interim Management Committee will manage and monitor the daily operations and cash flow of the company.

. Read more on Business by The Quint.RSS & BJP’s Nehru-Netaji ‘Cosplay’: Irony Dies a Thousand DeathsApple Goes Live 12 Hrs Before ‘It’s Show Time’ Event: How to Watch . Read more on Business by The Quint.