Jet Airways To Get Over Rs 3,000 Crore Fund-Infusion: Etihad Now In Cockpit, Naresh Goyal To Play Second Fiddle

Jet Airways To Get Over Rs 3,000 Crore Fund-Infusion: Etihad Now In Cockpit, Naresh Goyal To Play Second FiddleJet Airways aircraft (Prasad Gori/Hindustan Times via Getty Images)

Jet Airways is likely to receive fund infusion of more than Rs 3,000 crore after debt-rejig and investments by Etihad Airways as well as National Investment and Infrastructure Fund (NIIF), while founder Naresh Goyal might remain the promoter with less than half of the existing majority stake of 51 per cent, Economic Times has reported.

The report cited sources as saying that Abu Dhabi-based Etihad, which owns 24 per cent stake in the carrier, is expected to infuse around Rs 1,400 crore in the ailing airline.

According to the report, Jet Airways’ board on 14 February approved a bank-led provisional resolution plan by which the lenders would become the largest shareholders in the airline. Part of the debt would be converted into 11.4 crore shares, after receiving approval from shareholders, at a consideration of Re 1 apiece as per RBI norms.

NIIF, where Abu Dhabi Investment Authority is a key stakeholder, is also expected to acquire a little over 19 per cent stake in Jet Airways. The NIIF is likely to put in Rs 1,400 crore, while lenders, led by the State Bank of India (SBI), are likely to convert debt into equity worth around Rs 600 crore, the report cited sources as saying.

As per the report, the fresh funding for the airline would amount to around Rs 3,400 crore and Goyal’s stake in the airline could reduce to 20 per cent from present 51 per cent, sources said.