Jet Airways hits upper circuit for sixth straight day, up 105% in 4 weeks

Shares of Jet Airways (India) were locked in 5 per cent upper circuit for the sixth straight day at Rs 37.65 on the BSE on Tuesday amid reports that South America-based Synergy Group has submitted a new expression of interest (EOI) for the beleaguered airline. The stock was trading at its highest level since September 17, 2019.

With today’s gain, the stock price of Jet Airways (India) has more-than-doubled, up 105 per cent in less than four weeks, from the level of Rs 18.40, hit on December 11, 2019.

Till 10:56 am, a combined 31,677 equity shares had changed hands and there were pending buy orders for 317,949 shares on the NSE and BSE, exchange data shows.

“Synergy had given an EoI for Jet in the first round of bidding. However, it failed to give a debt resolution plan for the airline company, even after getting several extensions. The lenders subsequently decided to call afresh for EoIs,” Business Standard reported.

Synergy is led by Bolivian-born Germán Efromovich. It owns majority stake in Avianca Airlines, the continent’s second largest.

Earlier, the resolution professional of Jet, Ashish Chhawchharia, had informed the bankruptcy tribunal that two new investors had shown interest for investing in the airline. One of them is a foreign investor from West Asia and the other is an Indian-entity-backed by a UK investor.
The latest deadline for EoI applications is January 15, the Committee of Creditors (CoC) had decided at their latest meeting.

The counter of Jet Airways has seen huge delivery-based buying in past two trading days on the BSE. On Friday, January 3, as many as 444,851 equity shares changed hands, while on Monday, January 6, total 102,086 shares were traded on the BSE. The name of the buyers and sellers were not ascertained immediately.

Jet Airways is trading under ‘Z’ group category which includes companies which have failed to comply with its listing requirements and/or have failed to resolve investor complaints. The trades in these scrips executed in 'Z' group will be settled on trade-for-trade basis. Under the trade-for-trade segment, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.

Despite a sharp run-up in market price, the stock is still down 88 per cent from its 52-week high level of Rs 312, touched on January 15, 2019. It hit an all-time high of Rs 1,379 in April 2005.