Retail shareholders hold around 20 per cent stake in Jet Airways.
New Delhi:
The fate of around 1.48 lakh retail shareholders, who hold around 20 per cent stake in troubled Jet Airways, is uncertain after the Supreme Court ordered the winding-up of the grounded airline led by Naresh Goyal.
Jet Airways has a current market capitalization of Rs 386.69 crore, while the airline’s retail shareholding is around Rs 74.6 crore.
Retail shareholders held nearly 20 per cent stake in Jet Airways (as on September 30). Other major shareholders include Etihad Airways (24 percent) and former promoters (25 percent).
The stock of Jet Airways, closed 5 percent lower circuit after the order, ended at Rs 34.04 per share on Thursday. The stock hit a high of Rs 63.15 in March but has fallen more than 46 percent since then.
A bench headed by CJI DY Chandrachud allowed the lenders’ plea against the transfer of ownership of the grounded airline to Jalan Kalrok Consortium (JKC). The bench invoked its extraordinary powers under Article 142 of the Constitution to “do complete justice” between the parties and ordered the immediate appointment of a liquidator.
Further, it ordered forfeiture of Rs 200 crore deposited by JKC and directed lenders to call performance bank guarantee (PBG) of Rs 150 crore.
In a petition filed in the Supreme Court, the Committee of Creditors (CoC) led by State Bank of India has questioned the National Company Law Appellate Tribunal (NCLAT) that the proposed revival plan is not in the best interest of creditors. ) ordered to maintain the resolution plan.
Due to severe financial crisis, Jet Airways, once one of the largest and most popular airlines in India, entered the corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC) in June 2019.
(Other than the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)