Snapping three-day losing streak, Jet Airways shares surged over 13 per cent in intraday trade on Tuesday amid strong speculative buying by retail investors on hopes of higher returns. The Jet Airways stocks have slumped over 45 per cent in last three trading session after the airline temporarily suspended operations as it failed to secure emergency funds from the lenders. Paring previous session losses, the Naresh Goyal-founded airline shares gained as much 13.08 per cent to hit an intra-day high of Rs 174.95 on the National Stock Exchange against the previous close level of Rs 154.60. The analyst sees this move as purely speculative in nature as it is not backed by any fundamental. In a similar trend, Jet Airways share price rose 11.57 per cent in intraday trade to Rs 172.50 on the Bombay Stock Exchange. The scrip opened a tad higher at Rs 158.80 against the previous closing price of Rs 154.60. Data from BSE showed that there was a surge in volume trade with 31.03 lakh shares changed hand over the counter as compared to the two-week average of 27.16 lakh shares. The exchange data indicated that foreign portfolio investors (FPIs) and fund houses continue to reduce their exposure to crisis-hit airline. They reduced their stakes in the company to 3.58 per cent and 1.47 per cent, respectively as on March 31, 2019, from 9.65 per cent and 4.96 per cent respectively in the year-ago period, according to a Mint report. At the same time, retail investors, who traded in lot sizes of less than Rs 1 lakh, increased their stakes in the company to 11.42 per cent as compared to 4.9 per cent as of 31 March 2018, the leading daily reported. Also Read: Jet Airways crisis: AITUC urges government to absorb employees of cash-strapped airline Jet Airways, which sits on the debt of more than Rs 8,500 crore, has shut down operations temporarily after it failed to secure emergency funds from the lenders. Last week, Jet Airways had asked lenders to release an interim fund of Rs 400 crore which was turned down by the SBI. In the latest development, the company's Non-Executive Non-Independent Director Nasim Zaidi has submitted his resignations "due to personal reasons and constraints of time". Last week, Independent Director Rajshree Pathy had also resigned from the board of the cash-strapped airline. Meanwhile, State Bank of India, leader of the seven-member consortium of domestic banks to Jet Airways, has started the bidding process for stake sale in the airline. While banks are hopeful of a successful bidding process, but they are also reportedly looking for resolution outside the insolvency law framework if the bidding for stake sale in the embattled airline does not bear fruit. Etihad Airways, TPG Capital, Indigo Partners, and National Investment and Infrastructure Fund (NIIF) have reportedly shown interest in buying a stake in Jet Airways. The details of initial bidders are expected to be cleared on May 10. Reports also suggested that billionaire Mukesh Ambani-backed Reliance Industries is also eyeing a stake in the airline. Also Read: Naresh Goyal's firm had Rs 260 crore cash when financial crunch hit Jet Airways Edited by Chitranjan Kumar<doc-sep>Running into debt of more than Rs 8,500 crore, Jet Airways has shut down operations temporarily after lenders decided against extending emergency funds for its survival. New Delhi: Ending a three-day losing streak, shares of Jet Airways (India) surged nearly 10 percent at close of trade on Tuesday on value-buying at lower levels. The scrip jumped 9.90 percent to close at Rs 169.90 on the BSE. During the day, it zoomed 12.19 percent to Rs 173.45. At the NSE, shares advanced 8.30 percent to close at Rs 167.55. On the traded volume front, 45.27 lakh shares of the company were traded on the BSE and over four crore shares on the NSE during the day. In the early trade, the scrip, after a positive opening, jumped 11.57 percent to Rs 172.50 on the BSE. At the NSE, shares zoomed 13 percent to Rs 174.95. In the past three days, the scrip plummeted 40.94 percent. It hit its 52-week low of Rs 132.20 on Monday. Running into debt of more than Rs 8,500 crore, Jet Airways has shut down operations temporarily after lenders decided against extending emergency funds for its survival. Cash-starved Jet Airways, which has around 23,000 employees, has delayed payment of salaries to the employees, including pilots.<doc-sep>Mumbai: Jet Airways shares have been quite resilient through all the crisis over the past few months. On Wednesday evening, the 25-year-old beleaguered private airline informed stock exchanges that it would suspend operations temporarily . When markets opened on Thursday, Jet Airways’ shares were, of course, in free fall. The stock touched a 52-week low during trading and eventually closed the day 32% down. Still, it does appear that the company’s shareholders think this isn’t really the final call to deboard. “Investors think there is still value to be found and people are pinning their hopes on the outcome of the bidding process for the airline," said an analyst requesting anonymity. Jet Airways has a market capitalization of ₹1,862 crore even after Thursday’s fall, and an outstanding debt of more than ₹7,000 crore, as on 31 December. Considering that the airline has shut operations, it seems unlikely any buyer will cut a deal that has positive implications for existing shareholders. In light of this, the resilience in Jet Airways’ shares is surprising. History is not in their favour either. When Kingfisher Airlines Ltd had temporarily suspended operations on 20 October 2012, the markets still gave its shares a value of ₹900 crore. Eventually, the shares turned out to be worthless. However, even in that case, note that the KFA stock had tanked about 40% six months prior to the temporary suspension. In Jet Airways’ case, its shares have increased by 10% in the last six months until Wednesday. While the airline may have possibly taken its last flight ever on Wednesday, investors’ hopes are still flying high. And even if Jet Airways were to revive, its capacity is not expected to bounce back quickly. Edelweiss Securities Ltd analysts wrote in a report on 8 April, “We assume that Jet Airways will eventually lose 50 planes to lessors, which would swerve its fleet size down to 73 in financial year 2021." Further, it’s not as if the outlook on profitability was bright. A Bloomberg poll of analysts was expecting Jet Airways to post a consolidated net loss of ₹460 crore for FY20. This is after reporting a massive ₹2,916 crore net loss for FY19. Meanwhile, other airlines are set to gain at the expense of Jet Airways. SpiceJet Ltd and InterGlobe Aviation Ltd shares have already risen by 53% and 33%, respectively, so far this year. InterGlobe runs IndiGo, India’s largest airline by market share. According to Kotak Institutional Equities, “Disruption of Jet Airways’ capacity can lead to temporary demand-supply mismatch, particularly going into peak summer demand." Needless to say, for Jet Airways’ shareholders, news flow on the stake sale process will be crucial to watch out for hereon. Lenders have told the airline the bidding process will conclude on 10 May. Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter. Never miss a story! Stay connected and informed with Mint. Download our App Now! !<doc-sep>Jet Airways share price plunged for third day in a row to the lowest level in 10 years. Jet Airways shares plunged for third day in a row to the lowest level in 10 years after it temporarily halted operations on Wednesday as it failed to secure emergency funding from the lenders. Jet Airways share price fell as much as 19.34 per cent intraday on the BSE to Rs 132.20. On the National Stock Exchange, Jet Airways share price slumped as much as 23.17 per cent to hit a 10-year low of Rs 126.65. In the last three trading sessions, Jet Airways shares has slumped as much as 47.33 per cent on the National Stock Exchange. (Also Read: How To Initiate The Refund Process On A Jet Airways Ticket) The debt-laden Jet Airways failed to secure emergency funding from the consortium of lenders led by State Bank of India and had to shut down all its operations temporarily. Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights, Jet Airways said in a statement on Wednesday. Also Read: Air India Can Hire Jet Airways' Co-Pilots, Not ''Costly Captains'': Indian Pilots' Guild Jet is saddled with $1.2 billion in debt and it has not paid its pilots, lessors, technical and ground staff in at least last three months. Also Read: SpiceJet Hires More Than 100 Jet Airways Pilots, Cabin Crew: Report Jet Airways today said that its non-executive and non-independent director Nasim Zaidi has quit the board citing personal reasons and time constraints. Also Read: Jet Airways Employees Considered Taking Over Airline: Pilots' Union Before joining the Jet Airways board in August 2018, Mr Zaidi had served as civil aviation secretary and chief election commissioner. Also Read: Jet Airways' Employees Seek President's Intervention For Salary Dues "This is to inform you that Nasim Zaidi has submitted his resignation as a Non-Executive, Non-Independent Director of the company with effect from April 21 due to personal reasons and constraints of time," Jet Airways informed stock exchanges in regulatory filings. Also Read: Crew Of Jet Airways' Last Flight Pose For A Final Photo As of 12:05 pm, Jet Airways shares traded 12.32 per cent lower at Rs 143.70 on the BSE, underperforming the Sensex which was down 0.73 per cent. Trading volume in Jet Airways shares was higher than usual as 37 lakh shares changed hands on the BSE compared with an average of 21 lakh shares traded daily in the past two weeks.<doc-sep>
Shares of crisis-hit Jet Airways continued its losing streak for the third straight session on Monday, with stocks slumping over 45 per cent in last three days on the BSE, after the airline temporarily suspended operations on Wednesday as it failed to secure emergency funds from the lenders. Extending previous session's losses, the airline's shares plunged as much as 23.17 per cent to hit a 10-year low of Rs 126.65 on the National Stock Exchange. In a similar trend, Jet Airways share price fell as much as 19.34 per cent in intraday trade to hit fresh 52-week low of Rs 132.20 on the Bombay Stock Exchange. Paring most of early losses, the scrip closed trade at 154.60, down 5.67 per cent. According to data available with BSE, there was surge in volume trade with 56.18 lakh shares changing hand over the counter as compared to two-week average of 21.11 lakh shares. The stock saw surge in selling after the company announced temporary suspension of flight operations after the State Bank of India-led consortium of lenders rejected the airline's plea for emergency funds. Last week, Jet Airways had asked lenders to release an interim fund of Rs 400 crore which was turned down by the SBI, on behalf of the consortium of Indian lenders. Jet Airways owes nearly Rs 11,261 crore to banks, which includes Rs 7,251 crore from domestic lenders and Rs 4,000 crore to its foreign lenders and unpaid interest amount of Rs 1,000 crore. "Since no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going. Consequently, with immediate effect, Jet Airways is compelled to cancel all its international and domestic flights. The last flight will operate today," Jet Airways had said in the filing. In the latest development, the company's Non Executive Non Independent Director Nasim Zaidi has submitted his resignations "due to personal reasons and constraints of time". Last week, Independent Director Rajshree Pathy had also resigned from the board of the cash-strapped airline. Now, all eyes will be on Jet Airways' board meeting on Tuesday where the management will discuss the way forward for the airline. On Saturday, Jet Airways CEO Vinay Dube along with Maharashtra Finance Minister Sudhir Mungantiwar, civil aviation secretary Pradeep Singh Kharola, the airline's chief financial officer Amit Agarwal, and representatives of pilots, engineers, cabin crew and ground staff unions met Finance Minister Arun Jaitley at his residence in Delhi on Saturday. Dube said that the minister assured to look into the cash-strapped airline's issues. Meanwhile, shares of InterGlobe Aviation (IndiGo) closed 4.22 per cent lower at Rs 1,489.10, while SpiceJet shares plunged 8.15 per cent to settle at Rs 125.15 amid surge in crude oil prices after a report suggested that the United States may stop sanction waivers to nations buying oil from Iran. Edited by Chitranjan Kumar