Shares in Jet Airways Ltd rose nearly 20%, its daily upper limit, in pre-open trade after Gulf carrier Etihad Airways said it is taking almost a quarter stake in Jet Airways at Rs. 754.74 per share, a 31.7% premium to Jet's closing share price on Tuesday.
Etihad will also invest an additional $150 million in Jet's frequent flyer programme and spend $70 million to buy Jet's three pairs of Heathrow slots through the sale and leaseback agreement announced in February.
The deal sets a valuation benchmark for further investment in Indian airlines, with budget carrier SpiceJet Ltd frequently the subject of stake sale reports.
Spicejet rose 13.6%, while Kingfisher Airlines Ltd gained 3.7%.