Jet Airways eroded investor wealth worth Rs 9,430 crore in 18 months

In last eighteen months, Jet Airways has eroded Rs 9,430.29 crore of investors' wealth, plummeting from Rs 9,889.79 crore on January 05, 2018 to Rs 459.50 crore on June 18, a decline of 95 per cent.

Jet investors have lost Rs 11,397.18 crore from its peak market capitalisation of Rs 11,856.68 crore of April 26, 2005. At that time, the airline's share price was at a historic high of Rs 1373.35.

Shares of Jet Airways hit an all-time low of Rs 32.25 apiece in intra-day trade on June 18 after State Bank of India (SBI)-led lenders chose to refer the airline to the National Company Law Tribunal (NCLT). Following Tuesday's plunge in Jet Airways shares, the stock price has eroded over 96 per cent from the peak seen in 2005.

Expressing distress over the mounting troubles at the company, Jet Airways founder and former CEO Naresh Goyal said that he hoped for the revival of the airline for the sake of its employees and travellers.

"I feel sad and deeply distressed mainly for our loyal employees who have waited months and were anxiously and hopefully awaiting a positive outcome to the Bank-Led Resolution Plan. I can only hope and pray that even now a solution can emerge and Jet can fly and fulfil the needs not only of employees but of air travellers who feel the absence of the Joy of Flying," Goyal said in a statement.

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Jet stopped its operations on April 17, 2019 after its lenders denied plea for emergency funding and impounded most of its 100-odd operational aircraft. The stock lost 32 per cent of its value on this notification. Since grounding of operations, investors have witnessed Rs 2,287 crore of wealth erosion.

In February 2005, Naresh Goyal led Jet Airways went for its initial public offering (IPO) and raised about Rs 1,900 crore (Rs 1,100 per share). It was the first private airline to be listed on the National Stock Exchange (NSE). In fact, the demand for Jet stock was so high that it was over-subscribed 16 times.

Shortly after being listed on bourses, Jet Airways touched its all-time high price of Rs 1,379 on April 26, 2005. Since its all-time high price, investors have lost 96 per cent of their wealth.

Jet Airways owes close to Rs 8,500 crore to a consortium of 26 banks, led by the State Bank of India (SBI). Apart from the huge debt owed to the banks, the cash-strapped airline has total liabilities of nearly 26,000 crore, which includes unpaid salaries and vendor dues.

ALSO READ: Jet Airways to go into bankruptcy as lenders fail to agree to revive

On June 28, Jet Airways stock will be delisted from daily trading on the National Stock Exchange.

Jet Airways started had its operations on May 5, 1993. After 26 years, lenders to India's longest-serving private carrier decided to start bankruptcy proceedings against the grounded airline, leaving its 16,000-odd employees and investors in the lurch.

ALSO READ: Jet Airways share price hits fresh all-time low of 32.25 after revival hopes for airline crash