Shares of Jet Airways continued to rise on Monday as the Foreign Investment Promotion Board (FIPB) readies to take up the airline's proposal for a stake-sale of 24 percent to the Abu Dhabi-based Etihad Airways.
The company's scrip at the Bombay Stock Exchange (BSE) rose by 8.98 percent or 35.50 points around 2.00 p.m. at Rs.431 from its previous close of Rs.395.50 Friday.
Jet Airway's scrip value increased by 17.43 percent Friday at Rs.395.50 after the company submitted an amended shareholding agreement to the finance and civil aviation ministries.
According to informed sources, the revised agreement was worked out after FIPB and stock market regulator Securities and Exchange Board of India (SEBI) raised concerns about the control and management of the company after the stake-sale.
The new agreement is said to have addressed the control and management issues, with Etihad agreeing to have only two board of directors from an earlier proposed four in the 10-member airline board.
Apart from the finance and civil aviation ministries, the FIPB, SEBI and the Department of Industrial Policy and Promotion (DIPP) have been studying the new agreement.
Earlier, on June 14, the FIPB had deferred a decision on approving the proposed stake-sale.
The deferral for the Rs.2,058 crore ($379 million) deal had come as SEBI and fair trade watchdog Competition Commission of India (CCI) sought clarity on some of the sticking issues like the number of Indian directors on board and the holding pattern of the merged entity.