Jet Airways founder Naresh Goyal. (Reuters)
Jet Airways founder Naresh Goyal. (Reuters)

Naresh Goyal opts out of Jet Airways bidding process

  • Ousted chairman Naresh Goyal was planning a bid for Jet Airways at least as early as January, through his majority owned firm Jetair
  • SBI Capital Markets, which has the mandate for the mandate for Jet Airways stake sale, will decide on bidders at a meeting today

Mumbai: Jet Airways founder Naresh Goyal has decided not to bid for acquiring stake in the cash-strapped airline, people aware of the development said Tuesday. The full service carrier, which is currently operating less than 10 aircraft, is awaiting fresh funding under a bailout plan.

Goyal, who had stepped down as Jet Airways chairman last month, has withdrawn the bid for the airline that he placed on 12 April.

Goyal was planning a bid for Jet Airways at least as early as January, a Mint report said Tuesday, citing regulatory documents show. Jetair Pvt. Ltd, a Goyal-owned company that is a general sales agent (GSA) to Jet Airways, agreed to provide the airline 250 crore as loan collateral, and considered investing in the airline at an extraordinary general meeting (EGM) on 14 January.

SBI Capital Markets, which has the mandate for Jet Airways stake sale on behalf of the SBI-led consortium of lenders, will decided on bidders for the airline at a meeting on Tuesday.

Etihad Airways PJSC, India’s National Investment and Infrastructure Fund (NIIF) and private equity firms TPG Capital and Indigo Partners were shortlisted on Monday to place binding bids for Jet Airways (India) Ltd. These bidders would be allowed access to Jet Airways’ data room before they can place binding bids by the end of May.

At 1.20pm Tuesday, Jet Airways shares were trading 10.64% lower at 233.95 apiece on the BSE after plunging as much as 18% intraday. The benchmark Sensex, meanwhile, scaled a new record high of 39,297.08 points.

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