Jet Airways goes lukewarm on rights issue – to raise funds overseas
10 Apr 2008
Mumbai: Jet Airways is now looking overseas to raise funds to meet its expansion plans. In a notice to the stock exchanges the listed airline company has said that its board has decided to seek shareholder approval to raise funds from overseas investors.
It said it would raise funds through issue of ADRs/GDRs or FCCB or through Qualified Institutional Placements and seek shareholder approval through a postal ballot.
Jet intends to use the proceeds from the issue to fund the induction of aircraft and the acquisition of Air Sahara which it concluded last year.
India's largest private carrier has seen its rights issue for $400 million delayed on three occasions. Last year, July, the company said the issue would hit the market in October, which then got postponed to January. Eventually it got pushed to March 2008 and now the placement will occur overseas..
Just last week, Naresh Goyal, chairman, said the rights issue would follow once the ''markets settle.''
A QIP, according to market analysts, is a much quicker route to raising money.