With Tuesday’s purge, shares of Jet Airways have fallen more than 96% from its issue price of ₹1,100 on 14 March 2005
In the year so far, the stock has plunged more than 85%, including more than 72% in June alone
Shares of Jet Airways (India) Ltd crashed nearly 53% during the day before closing 41% lower at ₹40.45 apiece on Tuesday a day after lenders decided to initiate bankruptcy proceedings against the debt-laden airline. This is Jet Airways’ steepest-ever single-day fall as the consortium of lenders led by the State Bank of India (SBI) chose to refer the carrier to the National Company Law Tribunal (NCLT).
In the year so far, the stock has plunged more than 85%, including more than 72% in June alone. Shares of rivals meanwhile gained investor confidence as Jet Airways struggled to find a buyer, finally leading to its suspension of flights on 17 April.
SpiceJet Ltd rose 53.5% while InterGlobe Aviation Ltd, which runs IndiGo, jumped nearly 43% so far in 2019.
With Tuesday’s purge, shares of Jet Airways have fallen more than 96% from its initial public offering price of ₹1,100 on 14 March 2005. On 26 April 2005, the stock touched an all-time high in intraday of ₹1,379 a share and has since then dropped 88.1%.
Stock exchanges will impose restrictions on trading in Jet Airways shares from 28 June as part of preventive surveillance measures to curb excessive volatility, according to a circular issued last week.
The NSE said in a circular last week that shares of Jet Airways would be shifted from “Rolling Segment to Trade for Trade Segment, wherein the settlement in the scrip will take place on gross basis with 100% upfront margin and 5% price band". There are trading restrictions in shares under Trade for Trade Segment.
Markets, meanwhile, were subdued on Tuesday as investors remained cautious ahead of US Federal Reserve’s two-day meet on interest rates. The BSE Sensex closed at 39,046.34, up 85.55 points or 0.22% while the 50-share Nifty closed at 11,691.50, up 19.35 points or 0.17%. Global 10-year bond yields have fallen as markets waited for monetary policy updates from both the US Fed and European Central Bank this week after inflation expectations in the euro zone plunged. Euro zone yields were hurt after weak data from China fanned concerns about the impact of a trade war and expectations of central bank rate cuts.