Jet shares soar over 4 pc on hopes of FIPB nod for Etihad deal

Jul 29 2013, 18:29 IST
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(Reuters) (Reuters)
SummaryJet Airways hopes that Foreign Investment Promotion Board would clear its deal with Etihad Airways.

Continuing its uptrend for the second straight day, shares of Jet Airways today surged over 4 per cent on hopes that the Foreign Investment Promotion Board would clear its deal with Abu Dhabi-based Etihad Airways. Shares of the company settled 4.22 per cent higher at Rs 412.20 on the BSE. Intra-day, the stock gained 9.96 per cent to Rs 434.90. At the NSE, the scrip ended 2.94 per cent higher at Rs 408. In terms of volume, 18.2 lakh shares of the company changed hands on the BSE, while over 63 lakh shares were traded on the NSE.

In past two trading sessions, Jet shares have jumped 22.38 per cent. After stock markets closed, Foreign Investment Promotion Board (FIPB) today cleared Abu Dhabi-based Etihad Airlines buying 24 per cent stake in Jet Airways for Rs 2,058 crore with some conditions. FIPB cleared the deal with some riders, sources attending the FIPB meeting said. The conditions include Jet seeking prior Government of India approval for any changes in the Share Holders Agreement (SHA) with Etihad. Also, any arbitration would have to be under Indian law and not English law as proposed in the revised SHA submitted by Jet-Etihad to FIPB. Once Jet-Etihad agree to the conditions, the deal would go to the Cabinet Committee on Economic Affairs (CCEA) for approval.

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