The 1.43 lakh retail shareholders of Jet Airways at the moment are observing an entire wipeout of their investments after the Supreme Courtroom ordered the troubled airline’s liquidation on Thursday, November 8, rejecting the Jalan Kalrock consortium’s takeover bid.
Naresh Goyal, chairman of Jet Airways(PTI file)
In response to alternate information, retail traders (who invested underneath ₹2 lakh) presently personal 19.29% of Jet Airways (India) Ltd shares.
Additionally Learn: Air India cancels a number of flights in peak winter. What passengers ought to know
This quantities to 1,43,894 shareholders proudly owning 2,19,12,441 shares within the firm, that means that the retail shareholders personal ₹74,58,99,491.64 ( ₹74.59 crore) in Jet Airways shares as a complete.
The corporate’s shares had closed at ₹34.04 on the Bombay Inventory Alternate (BSE) after the November 8 buying and selling session. This was a drop of 1.79 factors or 5%.
The corporate’s promoter, Naresh Goyal (the founder and chairman), owns 24.99% of the shares. Different main shareholders embrace Punjab Nationwide Financial institution, which holds 26.01%, and Etihad Airways, which holds 24%.
Additionally Learn: How a 21-year-old made $3.1 million this yr from a facet hustle she began in her storage at 16
Different shareholders embrace the Life Insurance coverage Company of India (LIC) which owns 2.07%, overseas portfolio traders who personal simply 0.01%, and NRIs who personal 0.96%.
What occurred to Jet Airways?
Jet Airways ceased operations in April 2019 after its money owed exceeded ₹7,500 crore, and it could not pay staff and distributors. Money owed have been a mounting drawback since 2010 because the airline struggled with rising prices and competitors from lower-cost carriers.
Thus, its lenders, led by the State Financial institution of India (SBI), took the case to the Nationwide Firm Regulation Tribunal (NCLT). Afterwards, traders from the consortium of Kalrock Capital and Murari Lal Jalan took curiosity and proposed a revival plan in 2021, which the NCLT agreed to.
Nevertheless, the plans failed as a consequence of disagreements over cost schedules with lenders and former staff.
In the meantime, Founder and Chairman Naresh Goyal was arrested by the Enforcement Directorate (ED) on September 1, 2023, on money-laundering fees, with the ED alleging he had siphoned mortgage cash price round ₹538.62 crore from Canara Financial institution.
Additionally Learn: Indian markets, not like their US counterpart, are falling after Trump’s win