Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Naresh Goyal to sell at least 5% Jet stake
BackBack

Naresh Goyal to sell at least 5% Jet stake

Naresh Goyal to sell at least 5% Jet stake

Jet Airways chairman and promoter Naresh GoyalPremium

Jet Airways chairman and promoter Naresh Goyal

Mumbai: Naresh Goyal, who is the promoter and chairman of India’s largest airline group Jet Airways, will sell at least 5% of the stake he owns to private equity houses by March 2008 in line with a market regulator fiat on public shareholding of listed companies in India.

Jet Airways chairman and promoter Naresh Goyal

Confirming the development, Goyal said he would act upon the guidelines of the market regulator.

“I will certainly fall in line with the regulator’s guidelines. I will do whatever is good for my company and its balance sheet," he said on the sidelines of the company’s annual general meeting on Thursday.

Last Jet Airways sold shares was when Goyal offloaded 20% of the airline firm’s equity capital in an initial public offering in February 2005 at Rs1,100 a share. Since then, the share price has plummeted to as low as Rs475 last July, before recovering to the current levels. The firm’s shares fell 4.95% on the Bombay Stock Exchange to Rs907.35 on Friday.

Jet Airways also plans to raise $400 million through a rights issue sometime in December or January to fund its aircraft acquisition programme, chairman Naresh Goyal says

Jet Airways is also planning to raise $400 million (Rs1,592 crore) through a rights issue to fund its aircraft acquisition programme.

“We have selected the bankers to the (rights) issue and their lawyers are in the process of preparing the relevant documentation. We expect to launch the rights issue sometime in December 2007 or January 2008," Goyal said. SSKI Corporate Finance Pvt. Ltd and HSBC Securities Services & Capital Markets India Pvt. Ltd are managing the issue.

A Mumbai-based industry analyst said that the stabilization of air fares following the consolidation in the industry augured well for Goyal. “But a preference issue would have been best option for (him) to bring down his shareholding to 75% rather than going for a rights issue of $400 million," the analyst said.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 29 Sep 2007, 02:26 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App