Shares of Jet Airways on Monday tanked more than 7% on bourses on Monday, eroding Rs. 412 crore from its market capitalisation, amid reports that Etihad may revise its deal to buy a stake in the Indian carrier.
According to reports, Etihad Airways Chairman Sheikh Hamed bin Zayed al-Nahayan said the Abu Dhabi-based carrier needs to revise its deal to buy a stake in the Indian carrier and it was too soon to say when a final agreement between the two carriers would be struck.
Reacting to the news, shares of the company opened on a weak note and then lost further ground and touched intra-day low of Rs. 563.30 on BSE, lower by 8.90% from its last closing price.
At the end of today's trade, the scrip however, gained some lost ground and was trading at Rs. 570.75, down 7.70% from its previous closing price.
In just a single day trading, the company lost a Rs. 412 crore from its market worth. At the end of today's trading, the stock's market capitalisation decreased to Rs. 4,927 crore, from Rs. 5,339 crore in the previous trading session (February 15).
On the National Stock Exchange as well, the stock opened at Rs. 615 and touched intra-day low of Rs. 563.20, down 8.85% from its previous closing price.
At the end of trade, the stock was trading at Rs. 573, down 7.27% from its last closing price.
Etihad is likely to buy 24% equity in Jet Airways valued at about Rs. 1,800 crore. If the deal is carried through, it would be the first investment by a foreign carrier in an Indian airline.