Jet Airways share movement news: Stock hit lower circuit - what investors must know

The shares of Jet Airways snapping the nine-session winning streak, hit a lower circuit of 5 per cent to Rs 126.45 per share on the BSE on Thursday as the debt-laden airline reported a loss of Rs 153.35 crore for the June quarter of FY20 as compared to Rs 1087.7 crore in the same period a year ago.

In the year-ago period, the loss stood at Rs 1,514.20 crore, the company said in a regulatory filing on Wednesday. While the total income of the airline, which has been non-functional since April 17, 2019, stood at Rs 10.96 crore in the June quarter of the last fiscal.

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Since the National Company Law Tribunal (NCLT) approved the resolution plan of the Jalan-Kalrock consortium with riders for the revival of the airline on June 22, 2021, the shares of the company have surged near 34 per cent from Rs 99.45 per share to yesterday’s closing Rs 133 apiece.

The Jalan-Kalrock Consortium, who is the winning bidder for the grounded Jet Airways, will make a total cash infusion of Rs 1,375 crore in the airline and lenders will take a steep haircut on their admitted claims of over Rs 7,800 crore under the approved resolution plan, an NCLT order said.

The tribunal approved the cash-strapped airlines' revival plan with conditions as it handed the final decision of landing slots to the Director-General of Civil Aviation (DGCA) and Aviation Ministry. 

A bench led by Janab Mohhamed Ajmal and V Nallasenapathy accepted the resolution plan but also stated that slots allocation will be considered, and historic slots will not be available. 

The NCLT has given 90 days to the aviation regulator to decide on slots for Jet Airways.

Jet Airways has been undergoing an insolvency resolution process since June 2019. The carrier shuttered operations in April 2019. 

The stock during the start of the year had touched 52-week high of Rs 165 per share on January 11, 2021, while it had touched Rs 23.50 per share a 52-week low on September 25, 2020.