Shares of Jet Airways on Friday soared over 7 per cent after the Union Cabinet cleared the company’s proposed sale of 24 per cent equity to Abu Dhabi-based Etihad.
Cheering the move, shares of Jet opened the day on a bullish note and further jumped 7.26 per cent to Rs. 414.70 on the BSE.
On the NSE, the scrip surged 7.24 per cent to Rs. 414.60.
Paving the way for the biggest ever foreign investment in India’s aviation sector, the Union Cabinet last night cleared Jet Airways’ proposed sale of 24 per cent equity to Etihad, days after the Rs. 2,058 crore deal got regulatory clearances.
The proposal was of Etihad to subscribe 27,263,372 Jet shares of Rs. 10 each, amounting to 24 per cent of post-issue paid-up equity share capital for Rs. 2,057.66 crore.
The FIPB had cleared the deal on July 29 with some major riders to maintain effective Indian control over the airline after the stake sale to Etihad.
Meanwhile, the broader market was also trading higher, with the BSE benchmark Sensex trading 72.86 points up at 19,974.93 at 1000 hrs.