Jet Airways takes off

Jet Airways seems to have taken off at full throttle today, as expected. The stock opened at Rs.688.60, a new 52-week high. Though it has come off those highs, it remains strongly in the green at Rs.649.70, up over 13%. Volumes are huge at over 10 lakh shares changing hands in the morning trades alone.

The stock has touched the sky post the deal with Etihad finally taking off, ending months of uncertainty. Etihad has picked up 24% stake , putting in Rs.2050 crore. Under the agreement, the Abu Dhabi-based airline will subscribe to 2.72 crore new shares of Jet Airways at Rs 754.74/share, which is at a substantial premium to the scrip’s closing price of Rs 573.85 on the BSE on Tuesday.

This deal will not trigger an open offer for other shareholders in Jet since it is below the trigger-limit.

The Jet deal has triggered off a spike up in  the aviation stocks, with Spicejet up almost 9%, with the market hoping that a deal could happen in Spicejet too.