Sunday 25 November 2012

Jet Airways soars on stake-sale buzz


Mumbai, Nov. 23:  
The Jet Airways stock touched a 52-week-high on the bourses on Friday on stake-sale talk. The stock gained about 16 per cent. There has been speculation that the promoters of the airlines are planning to sell their stake to a Hong Kong- based investment company. Block deals at the exchanges also suggest high intra-day trading activity.
The stock closed at Rs 505.75, up 15.85 per cent on the Bombay Stock Exchange. It touched an intra-day high of Rs 512.20.The stock has been consistently performing well. It rose 42 per cent over the last month.
To comply with the Securities and Exchange Board of India’s regulations, the promoters of Jet Airways have to reduce their stake to less than 75 per cent by June 2013.
According to the shareholding disclosure in September, the promoters hold 80 per cent stake in the company, FIIs 4.81 per cent and domestic institutions 6.31 per cent.
“The stock is gaining amid speculation of stake sale. There is expectation that Jet Airways will report good results and people are positive about the stock,” said Sharan Lilaney, aviation analyst, Angel Broking. Speculation is rife that a foreign carrier may buy a stake in the company.
However, a Bloomberg report quoting Ragini Chopra, spokeswoman of Jet Airlines, said: “The airline has no plan at all for a stake sale”.
Other aviation stocks also gained. On the BSE, shares of Spice Jet closed at Rs 39.30, up 7.82 per cent from its previous close and Kingfisher Airlines closed at Rs 13.72, up 1.82 per cent.
http://www.thehindubusinessline.com/todays-paper/jet-airways-soars-on-stakesale-buzz/article4127714.ece

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