Jet Airways Ltd plans to raise about $840 million from a government fund and a rights issue, Business Television India said, a day after the company’s board approved a deal for some lenders to infuse funds and restructure debt.
India’s National Investment and Infrastructure Fund will funnel 15 billion rupees ($210 million) into the debt-laden carrier for a 20 percent stake and Jet may propose to raise 45 billion rupees via a rights issue priced at 125-150 rupees per share, Business Television India reported, citing sources.
Jet said on Thursday its board had approved a rescue deal that will make its lenders its largest shareholders and fix a near 85 billion rupee ($1.2 billion) funding gap.
Jet and the fund were not immediately available for comment.
Shares in Jet were volatile, dropping as much as 4.8 percent when trading opened on Friday and rising as much as 7.5 percent later as investors cheered the rescue deal.
