Jet Airways: 1.43 Lakh Retail Shareholders Stare At Wipeout After SC’s Liquidation Order

About 1.43 lakh retail investors have been left in the lurch after the Supreme Court’s liquidation order of Jet Airways on November 8. The apex court rejected Jalan Kalrock consortium’s takeover bid.

Retail investors currently own 19.29% stake in Jet Airways. Close to 1,43,894 shareholders own 2,19,12,441 shares, which has a value of ₹74.59 crore.

Company’s promoter Naresh Goyal owns 24.99% of the shares, while other shareholders including Punjab National Bank and Etihad Airways hold 26.01% and 24% stake respectively.

During the trading session on November 8, shares of Jet Airways closed at ₹34.04 apiece on the Bombay Stock Exchange (BSE), a drop of 5%.

What happened to Jet Airways?

The airline major went bust in 2019 after its debts surpassed ₹7,500 crore. Lenders including State bank of India (SBI) took matters before the National Company Law Tribunal (NCLT) for a resolution. Notably, debts have remained a major problem for Jet Airways since 2010 as the company struggled with rising costs and competition from lower-cost carriers. Following major developments, a consortium of Kalrock Capital and Murari Lal Jalan proposed a revival plan in 2021. Later, the revival plans failed due to disagreements over payment schedules among lenders and former employees.

Previously, founder and Chairman Naresh Goyal was arrested by the Enforcement Directorate (ED) on the charges of money laundering. The investigation agency alleged the businessman of siphoning loan money worth ₹538.62 crore from Canara Bank.