Share price of Jet Airways jumped five per cent to hit highest trading permissible limit on Tuesday after reports of Hinduja Group gearing to buy the grounded airways hit the market.
The scrip gained 4.96 per cent to Rs 29.60, its upper circuit limit, on the BSE and on NSE it rose 4.87 per cent to Rs 29.05, its highest trading permissible limit for the day.
As per the reports, the Hinduja brothers, Gopichand Hinduja and Ashok Hinduja, are chalking out a plan to submit an expression of interest by January 15. The same reports claimed that the UK-based tycoons are seeking a partner in their bid.
The report published by Bloomberg also stated that Hinduja brothers were earlier considering to bid with Etihad.
So far, a single company, Synergy Group Corp has expressed its interest in jet Airways. However, it has sought some extra time before it decides to invest in the grounded airline.
The Mumbai-based airline was grounded in April after it ran out of money to run its operations. The airline is currently undergoing resolution process under the Insolvency and Bankruptcy Code (IBC).
State Bank of India and Punjab National Bank have claimed Rs 8,230 crore ($1.2 billion) from the airlines. Whereas, other creditors including employees and lessors have sought Rs 6,400 crore from the airline. Abu Dhabi’s Etihad Airways PJSC owns 24 per cent of Jet Airways.
(With input from agencies)