Shares of Jet Airways (India) tanked 34 per cent to Rs 159, also its 10-year low on the National Stock Exchange (NSE) on Thursday after the company suspended operations as lenders turned down the airline’s demand for emergency funding.
The stock was trading at its lowest level since April 1, 2009. It recorded its sharpest intra-day fall since its listing on March 14, 2005.
According to a Business Standard report, lenders’ consortium, led by State Bank of India, indicated the effort to select a new investor would continue even as Jet was “temporarily” grounded on Wednesday.
The grounding comes after weeks of painstaking negotiations between the airline and its lenders for funds following a severe cash crunch that had led to defaults and mounting dues. The airline was initially committed an interim funding of Rs 1,500 crore in March, as part of a bank-led resolution plan which was to see the transfer of ownership and management to banks, added report.
