Jet Airways share price hits UPPER CIRCUIT – Here is why

As the National Company Law Tribunal (NCLT) on Tuesday cleared resolution plan for Jet Airways, the shares of the company hit an upper circuit of five per cent to Rs 99.45 per share on the BSE intraday trade today, as compared to Rs 94.75 per share previous close.  

The tribunal approved the Kalrock-Jalan consortium plan for Jet Airways' revival but refuted its demand for the historicity of airport slots and traffic rights. A bench of Janab Mohhamed Ajmal and V Nallasenapathy approved the resolution plan with conditions.  

The stock during the start of the year had touched a 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. 

The Kalrock-Jalan consortium won the bid last October to restart the airline by proposing a nearly Rs 1,200 crore payout to its creditors. Jet Airways, founded in 1993, has been under insolvency for two years after it shut operations in April 2019. 

The stock jumped over 12 per cent in the last two days and it has been trading below Rs 100 per share levels since March 24. However, it had been trading near 150-160 per share levels before that. The stock has been trading volatile since April, has it jumped around 30 per cent since April 22, 2021. 

Over 41,000 shares were traded on the BSE so far in the intraday trade while over 70,000 shares exchanged hands on the NSE. 

Besides Jet Airways, the other company which is under IBC the process is DHFL (Dewan Housing Finance Limited) and Piramal Enterprises is leading contender mostly to take over the operations of the stale NBFC (Non-banking finance company).