Shares of Jet Airways were locked in the upper circuit limit of 5 per cent at Rs 29.6 on the BSE on Tuesday amid reports that Hinduja Group is preparing a bid to buy the grounded carrier.
The UK-based group, run by brothers Gopichand Hinduja and Ashok Hinduja, plans to submit an expression of interest by the January 15 deadline, signaling its intent to make a formal offer, sources reported quoting unnamed sources. Hinduja is seeking a partner to bid, the report added.
The Group had considered bidding for Jet Airways in partnership with Etihad, but the latter jettisoned the proposal pushing the temporarily de-funct airline into bankruptcy. Jet Airways stopped flying in April after it ran out of money for daily operations.
Last week, Jet Airways had informed the exchanges that the had Committee of Creditors (CoC) passed the resolution to issue fresh invitation of Expression of Interest.
As per reports, Gopichand Hinduja had earlier said that the group was open to buying Jet Airways “if indemnified from the airline’s legal liabilities”.
With today’s gain, the market price of Jet Airways surged 61 per cent from level of Rs 18.40 on December 11, as the creditors of the shuttered airline decided to seek fresh initial bids for the airline. The seventh meeting of CoC of Jet Airways (India) is scheduled to be held on January 02, 2020. The stock hit a high of Rs 31.10 on Monday in intra-day trade.
Source: Business Standards, December 31, 2019