Jet Airways shares crash over 32% as airline halts operations; hit 52-week low during the day

Hours after banks and lenders denied infusion of emergency funds, Jet Airways on Wednesday announced a complete shutdown of operations temporarily.

By : ABP News Bureau | Updated at : 18 Apr 2019 05:35 PM (IST)

Jet Airways shares crashes over 32 pc as airline halts operations, hit 52-week low during the day Jet Airways shares crash over 32% as airline halts operations; hit 52-week low during the day

This was a continuous second-day fall in shares of the private airlines. (Imag: Getty)

Jet Airways' scrip tanked 32.23 per cent to close at Rs 163.90 on the BSE

Jet Airways on Wednesday announced a complete shutdown of operations temporarily

Banks rejected an immediate Rs 400 crore demand of Jet Airways

Jet Airways shutdown: A day after shutting its operations temporarily, shares of cash-strapped Jet Airways felt drastically over 32 per cent on Thursday. This was a continuous second-day fall in shares of the private airlines. According to reports, the scrip tanked 32.23 per cent to close at Rs 163.90 on the BSE. Intra-day, it plunged 34.62 per cent to Rs 158.10 - 52-week low. On the National Stock Exchange (NSE), shares sank 31 per cent to close at Rs 165.75 apiece. On the traded volume front, 60.41 lakh shares of the company were traded on the BSE and over 5 crore shares on the NSE during the day. The scrip had fallen 7.62 per cent on Tuesday also. In two days, the company's market valuation has eroded by Rs 1,111.14 crore to Rs 1,861.86 crore on the BSE. Stock markets were closed Wednesday on account of Mahavir Jayanti. Hours after banks and lenders denied infusion of emergency funds, Jet Airways on Wednesday announced a complete shutdown of operations temporarily. “The lenders after due deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have expressed EOI (Expression of Interest) and have been issued bid documents on April 16,” a statement by lenders said. A consortium of 26 lenders led by the SBI, with 51 per cent stake in the debt-trapped airline, has invited bids from potential suitors. “Lenders are reasonably hopeful that the bid process is likely to be successful in determining the fair value of the enterprise in a transparent manner,” it said. Meanwhile, in a statement early Thursday, Jet Airways' lenders said they were reasonably hopeful of a successful bidding process for the stake sale. The announcement came early morning ahead of market opening. Banks on Wednesday rejected an immediate Rs 400 crore demand of Jet Airways, compelling it to ground operations. Jet had been, over the last few months, on a decline as competition from budget airlines hurt its profitability and led to a debt pile. It reported losses for four straight quarters despite sales holding up.