Jet Airways in turbulence
Jet Airways had hit the 5% UC yesterday at Rs.50.25 and today, the moment it opened for trade, it hit the 5% LC at Rs.47.75.
Yesterday was the deadline for submitting the Expression of Interest (EoI) and there is unconfirmed news that two EoIs have been received - New Delhi-based Prudent Asset Reconstruction Company and South American conglomerate Synergy Group. There was so much talk about the Hinduja’s also submitting a bid but there was nothing from their end.
By Jan 18th, the EoIs will be assessed and list of the prospective buyers will be produced. A strategic investor needs to have a minimum net worth of Rs.1000 crore while a financial investor must have Rs.2000 crore funds available. They both need to clear the eligibility criteria after which they can submit their bids by 17th Feb.
The market is not too happy about this as it had pinned all its hopes on the Hindujas. With them not even boarding this flight, there now doubt if anything concrete will come from these two. Synergy had submitted an EoI last time too but did not bid. Very little is known about Prudent ARC and it is doubtful whether it will be able to show a networth of Rs.2000 crore.
Both the companies are yet to announce an Indian partner. Thus with so many doubts surrounding the EoI, the market is unsure whether anyone of these will translate into a bid.