New Delhi: A day after bankers said they plan to begin insolvency proceedings against Jet Airways, its shares plummeted to a record low on Tuesday. The airline's market value halved in a single day after yesterday’s decision.
Jet Airways shares plunged as much as 53.72 per cent to an intraday low of Rs 31.65 on the National Stock Exchange (NSE) on Monday afternoon. Jet's scrip nosedived 52.78 per cent to touch an intraday low of Rs 32.25 at the Bombay Stock Exchange (BSE). At 1:27 pm on Tuesday, Jet Airways stock was reduced by 49.27 per cent at Rs 34.65. Jet Airways stock was trading 50.88 per cent lower at Rs 33.60 on the NSE.
Insolvency proceedings against Jet Airways are likely to begin this week, as per a report by Reuters. The insolvency petitions filed by the airline's operational creditors for loan recovery could be heard at the National Company Law Tribunal (NCLT) on June 20, the report said.
Shares of Jet Airways would be pulled out of derivative trading, alluding to the company's failure to respond to queries about rumours in the market, the NSE had said last week. From the current rolling segment, which allows day trade, Jet Airways’ securities will be moved to the trade for trade segment with effect from June 28 as a "preventive surveillance measure", the NSE had said.
After running out of liquidity and failing to secure cash, Jet Airways grounded all flights on April 17. Jet Airways is weighed down by a loan of more than Rs 8,000 crore and additionally owes a large amount of money to suppliers, oil companies, aircraft lessors and employees.
Jet Airways shares have fallen 73.91 per cent since the airline was grounded. The airline and its bankers have been searching without success for new investors.