Jet's Q2 loss widens 5.7 pc, awaits FIPB nod to raise $ 400 mn

Naresh Goyal-owned Jet Airways on Tuesday said it is awaiting government approval to raise $400 million to meet its cash flow requirements.

Naresh Goyal-owned Jet Airways on Tuesday said it is awaiting government approval to raise $400 million to meet its cash flow requirements.

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The airline on Tuesday announced that its net loss widened by 5.76 per cent to Rs 406.69 crore for the second quarter against Rs 384.5 crore in the year-ago period.

"We are awaiting the response to our application filed for FIPB approval," Jet Airways' Senior Vice president (Finance) M Shiv Kumar said during a conference call here.

Kumar said a meeting with the Foreign Investment Promotion Board (FIPB) officials on the issue is slated in New Delhi on October 30.

As the appetite for domestic investment in the aviation sector is not strong, Jet Airways plans to raise funds by selling equity to foreign institutional investors (FIIs) through Qualified Institutional Placement (QIP) route.

When asked about reports that the government had deferred its approval, Jet Airways Executive Director Saroj K Datta said, "these are speculative comments, we don't have to worry about these."

The airline proposes to issue 7.92 crore fresh equity shares at a price of Rs 252.5 per share to raise the amount.

Its revenues fell by 26.9 per cent for the second quarter at Rs 2,380.97 crore. Jet Airways had earned revenues of Rs 3,258.45 crore in the same quarter last fiscal.