Jet Airways expects to divest 10 per cent stake over the next few weeks

Mumbai: Jet Airways, India's largest private airline, is planning to shed a 10 per cent stake to institutional investors, before floating a $400-million public issue in June, according to reports emerging in the media. Post divestment, the promoters holding will come down to 70 per cent.

Jet officials have been quoted as saying that they are in talks with three to four institutional investors as well as banks that may be interested in picking up a stake in the airline.

According to officials, no fresh shares will be issued to institutional investors, with the 10 per cent stake be divested directly from the promoters holding. They also said that no firms have been short-listed and that the stake will very likely be sold to the investor paying the highest premium.

They have also said that they expect to close the deal over the next 2 to 3 weeks, if market conditions remain good.

Almost the entire 80 per cent promoter stake in Jet Airways is held by Tail Winds, a company registered in the Isle of Man.