Shares of Jet Airways lost the ground on Tuesday by posting its biggest single-day fall since its listing in March 2005. The airline stock extended its losses and closed the session 40.7% lower at Rs 40.25 on the Bombay Stock Exchange (BSE).
The stock tanked after the State Bank of India led consortium of lenders on Monday decided to take the airline to National Company Law Tribunal (NCLT) after failing to receive buyers. Additionally, on Tuesday Ashok Chawla and Sharad Sharma resigned as independent directors of the company. This happened in view of the bank led resolution plan not moving forward.
Since April 17, flight operations of Jet Airways has been halted and the airline has lost over three fourth of its market cap from Rs 1872.6 crore on April 18 to Rs 460 crore on June 18.
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The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on June 12 said that shares of Jet Airways will be removed from daily trading of futures and options effective June 28. The airline has deferred interest payments to banks and dues to fuel suppliers, oil marketing companies and aircraft lessors. Besides, in May the NSE had fined Jet Airways for failing to comply with the listing norms for the quarter ending 31 March 2019. The stock exchange had imposed a fine of Rs 4,15,000 on Jet Airways.