Is Jet Airways mulling a rights issue?
19 Jun 2007
Private
airliner Jet Airways is likely to consider a rights issue on June 26 of $400 million,
reports CNBC-TV18. The rights issue is likely to be used for aircraft acquisitions.
Analysts say that the issue is likely to be priced around Rs650-Rs700
and that it has been on the anvil for the past few months. They feel that it is
coming at the right time.
Apparently, Naresh Goyal, the promoter of Jet
Airways has said that he is looking at $400 million via the rights issue. In fact,
CLSA in the past few reports has already taken into account a dilution of Rs650,
which means that the dilution could be around 29 per cent.
The rights issue comes at an interesting time, as the carrier was looking at a fund structuring because its debt-equity structure had been skewed towards higher debt.
Most
analysts have a ''buy'' call on Jet Airways now. They have upgraded Jet. So, there
is no wonder that the follow-on public offer, when it happens, will go through.
