Jet Airways to shed promoter stake over next fortnight

Bangalore: Officials of full-service carrier, Jet Airways, have indicated that they expect to finalise deals with Indian and foreign private equity firms and financial institutions for offloading up to 10 per cent of the promoters' stake over the next 2-3 weeks.

The proceeds from the sale would be ploughed back as promoters' contribution to Jet's planned Rs1,600 crore ($400 million) rights issue, which is now expected to take place in the first quarter of 2008-09. The stake sale will dilute promoter equity from 80 per cent to 70 per cent.

Jet has planned offerings of one rights and one equity issue to bring down its debt-equity ratio, which is currently very high at 7:1.