Shares of Jet Airways slumped over 12 per cent in morning trade on the bourses after the Foreign Investment regulator deferred the Jet-Etihad deal.
The Foreign Investment Promotion Board (FIPB) on Friday deferred a decision on the Rs. 2,000-crore Jet-Etihad deal and sought clarity on control and ownership.
Reacting to the development, which was announced after market hours on Friday, the shares of the company opened on a weak note and then lost further ground and fell 12.27 per cent to touch an early low of Rs. 411.60 on the BSE.
Similar trend was witnessed on the National Stock Exchange where the stock after opening at Rs. 433, fell 12.61 per cent to an early low of Rs. 411.05.
Marketmen attributed the slump in the counter as a knee jerk reaction of FIPB deferring the Jet-Etihad deal as the broader market was trading with gains of 32.78 points at 19,210.71.
Market regulator SEBI and competition watchdog CCI have already sought clarifications from the premier private carrier on the transaction, to ensure that Etihad’s ownership powers in Jet remains in line with its 24 per cent stake in the company’s equity capital.