Jet's promoters to sell 1.54% more stake to comply with Sebi norms
Jet Airways on Friday said market regulator Sebi has allowed its promoters to sell further 1.54% stake and relaxed the conditions for undertaking the sale through OFS route to help the company meet minimum 25% public shareholding norm.business Updated: May 31, 2013 15:16 IST
Jet Airways on Friday said market regulator Sebi has allowed its promoters to sell further 1.54% stake and relaxed the conditions for undertaking the sale through OFS route to help the company meet minimum 25% public shareholding norm.
Jet Airways, on Thursday, offered to sell nearly 43 lakh shares via Offer-for-sale (OFS) mechanism and got bids for around 30 lakh scrips accounting for 3.5% stake in the company.
Further sale of 1.54% holding, which could be done on Monday, the last date for complying to Sebi's norms, would result in total 5% stake sale by promoters. This would take the total public holding in the company to 25%.
Sebi, in a communication to Jet Airways' main promoter Tail Winds, said,"Promoters of the company are allowed to sell upto 1.54% of the share capital on the floor of the stock exchange in a bona fide manner to unrelated non-promoter entities through the regular market conditions."
Shares of Jet Airways, which opened on a weak note, further fell by 5.66% to a low of Rs 498.60.
However, after the share-sale, the company recouped some of the losses and was trading at Rs 504.25 apiece on the BSE, down 4.60% from the previous close at 12:49pm.
Meanwhile, Tail Winds is in the process of transferring its stake to Jet Airways chairman Naresh Goyal. Since last week, Tail Winds had sold 66% stake to Goyal through two block deals on the stock exchanges.
On Thursday, Goyal had picked up nearly 37% stake in the company for about Rs 1,670 crore. Last week, Goyal had purchased 29% stake from Tail Winds for about Rs 1,434 crore.
At the end of the March quarter, Tail Winds held 6.90 crore shares or 79.99% stake in Jet Airways, while Goyal owned 9,995 scrips, amounting to 0.01% holding, in the company in his personal capacity.
The transactions are part of Jet Airways' plan to make Goyal its main promoter with at least 51% stake in his personal capacity. Jet's board and shareholders have already approved allotment of shares on preferential basis for sale of 24% stake to Abu Dhabi-based Etihad Airways.
After the completion of Jet-Etihad deal, Jet has proposed to have 51% stake with Goyal, 24% with Etihad and remaining 25% with the public.