Mumbai: Indian private carrier Jet Airways expects to complete a delayed rights issue in the next couple of months despite turbulent global markets, a senior company official said on Tuesday.
Jet, which last year put a $400 million rights issue on hold because of a global credit crunch, will kickstart the process in two weeks and close the issue 90 days later, K.G. Vishwanath, senior general manager of investor relations, told Reuters.
“We’re keen to have the money come in now, when we’re investing in our international operations,” he said.
“We’re confident the rights issue will sail through.”
Jet, which reported a net loss of Rs911 million ($23 million) in the October-December quarter Monday, said it would raise a further $400 million from a share placement with institutional investors.
The placement will include a dilution of the founder’s 80% stake, which he is required to cut to less than 75% by March, Vishwanath said.
“We have asked bankers to find out what the appetite is for our shares,” he said, adding the sale was likely to be made to a clutch of investors.
“We’re confident investors will be willing to pay a premium to the current share price,” he said.
Shares in Jet, which has a market worth of about $1.65 billion, fell to as much as Rs722 on Tuesday, or down 34% from their IPO price of Rs1,100 three years ago.
Jet expects to raise the full $800 million in the next five to six months, Vishwanath said.