Jet Airways shares surge 10% as insolvency proceedings begin

Shares of Jet Airways continued gaining streak for the third straight session on Monday, rallying over 10 per cent in early deals on the Bombay Stock Exchange, after the NCLT admitted the cash-strapped airline for insolvency proceedings.

Jet Airways share, which hit a fresh 52-week low of Rs 27 in trade on Thursday, has rallied over 140 per cent in the last three trading sessions amid heavy volume due to speculative trade.

Extending its previous session rally, the share price of Jet Airways gained as much as 10.42 per cent to hit an intra-day high of Rs 80 against the previous close of Rs 72.45 on the BSE. Paring some of the early gains, the stock was currently trading at Rs 73.90 apiece, up 2 per cent.

In a similar trend, shares of Jet Airways were trading at Rs 75.30, up 3.72 per cent, on the National Stock Exchange. The scrip opened higher at Rs 65.35 and touched an intra-day high of Rs 79.85.

Also Read: Jet Airways insolvency process: Airline employees receive 1st letter from resolution professional

The debt-laden company became the first domestic airliner to go into bankruptcy after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition filed by SBI on behalf of 26 lenders on June 20. The airline owes Rs 8,500 crore to banks and around Rs 25,000 crore in arrears to vendors, lessors and employees.

"The National Company Law Tribunal, Mumbai Bench, Corporate Insolvency Resolution Process (CIRP) has been initiated for Jet Airways (India) Limited as per the provisions of the Insolvency and Bankruptcy Code, 2016," the airline said in a filing to the Bombay Stock Exchange on June 23.

Also Read: SBI Chairman Rajnish Kumar says decision to take Jet Airways to NCLT was last effort to find resolution

The once largest private sector airline, which started over 25 years ago by airline-ticketing-agent-turned-entrepreneur Naresh Goyal, stopped flying on April 17 after it ran out of cash and the unpaid lessors took away most of its 100-odd operational aircraft.

Edited by Chitranjan Kumar