New Delhi: Shares of debt-laden Jet Airways slipped to a record low on Tuesday after Mint reported that Hinduja Group and Etihad Airways PJSC may not proceed with plans to resurrect Jet Airways, dealing a severe blow to efforts aimed at rescuing the airline that has suspended flights for nearly two months.
Jet shares slumped as much as 14.8% to an all-time low of ₹106.3, Reuters reported. The company has shed nearly 69% in one year as of Monday's close.
At 12:05 pm, the stock was trading down 10% at ₹112.60 on BSE while on NSE it was at ₹112.55, down 9.82%. The stock had also hit a 52-week low during the morning trade.
London-based Hinduja Group has decided to halt negotiations to buy a stake in Jet Airways, while Etihad Airways of Abu Dhabi has put on hold a plan to add more investments in the Mumbai-based airline, two people familiar with the matter told Mint, requesting anonymity.
“As far as bidding for Jet Airways is concerned, the Hinduja Group has taken a back seat now," said one of the two people cited above. “The promoters of the group feel that it’s too risky for them to get involved (with Jet Airways) at the moment, due to ongoing government investigations and the recent insolvency pleas submitted by operational creditors at the National Company Law Tribunal (NCLT)."
Two operational creditors of Jet Airways, Shaman Wheels Pvt. Ltd and Gaggar Enterprises Pvt. Ltd, filed separate insolvency pleas on Monday against Jet Airways at NCLT, Mumbai, for recovery of their dues.
Meanwhile, the income tax department is probing possible tax violations by Jet Airways, while the corporate affairs ministry has ordered a probe into the books of the airline after the Registrar of Companies had submitted a report to the ministry highlighting instances of violation of the Companies Act in the airline.