Hindujas evaluating bid for Jet

Airline’s shares surge 15% on the group’s reported bid

In limbo: A bank-led resolution plan for sale of Jet Airways failed as not a single bidder submitted binding bids.

Hinduja Group said on Tuesday it was considering to invest in Jet Airways which remains grounded since April 18, 2019.

Amid reports by a section of the media that the Hindujas’ had initiated discussions with various stakeholders of Jet Airways, the Hinduja Group, through an external communication person said, “Hinduja Group is evaluating the Jet Airways opportunity.”

The group, which was reported to have shown interest to acquire Air India about a decade ago, did not elaborate onwhy it was keen on Jet Airways.

After the Hindujas’ reported bid, Jet Airways’ shares surged and closed with a gain of 14.73% at ₹150.75. A bank-led resolution plan for sale of Jet Airways had failed as not a single bidder submitted binding bids as required by the lenders.

Etihad Airways, which owns 24% of the grounded airline, has submitted a conditional bid and wants an Indian investor to take the lead in reviving the airline.

Etihad does not want to invest anything more than ₹1,700 crore to retain its 24% holding and as per the bank led resolution plan, the airline was in need of ₹8,500 crore to stay afloat.

The lenders are also in talks with National Infrastructure & Investment Fund (NIIF), a joint venture of the Government of India and Abu Dhabi Investment Trust, to invest in Jet Airways.