Cabinet panel approves $400 million FDI in Jet Airways
24 Dec 2009
The Cabinet Committee on Economic Affairs (CCEA) today approved the proposal by Jet Airways (India) Ltd to seek foreign capital to the tune of $400 million.
CCEA approved the FDI proposal on the recommendation of the Foreign Investment Promotion Board (FIPB).
The CCEA approval will make Jet Airways (India) Ltd eligible for investment participation by foreign institutional investors and raise capital to the tune of $400 million through the qualified institutions placements (QIP) route.
The approval would also result in FDI amounting to $400 million in the country.
Jet Airways had earlier planned to raise the amount by private placement of shares with qualified institutional buyers or by global depository receipts (GDRs), American depository receipts (ADRs) and foreign currency convertible bonds (FCCBs).
The company has already received shareholders' approval for raising additional capital of up to $400 million (Rs2,000 crore).