Relief for Jet stakeholders and stocks as Hinduja Group confirms interest | UK-based conglomerate interested in a minority stake amounting to Rs. 1000-1500 crores
As per reports, the Hinduja Group is underway with its evaluation of the viability of an investment in debt-ridden Jet Airways which has been stagnant since April 17.
Dheeraj G Hinduja, Chairman of Hinduja-owned Ashok Leyland confirmed the interest from the Group in the crisis hit carrier. However,while announcing fiscal results for Ashok Leyland in Chennai, He said it is premature to talk anything more about in the regard.
- Hinduja Group is reportedly in talks with various stakeholders, which includes Abu Dhabi-based Etihad Airways
- As per various reports, Hindujas are interested in infusing around Rs 1,000 to 1500 crore in the loss-making airline.
- On confirmation of the news of Hinduja’s interest, Jet Airways stocks saw upward movement with 14 percent gains.
- With business interests in 10 sectors across 38 countries, Hinduja Group is the UK’s wealthiest conglomerate.
- Hinduja Group was ropes in by Etihad Airways which holds around 23 percent stake in the temporarily shut down carrier.
But negotiations between Hinduja Group and Etihad are moving along at a really slow pace. As per reports, Hinduja Group officials met Etihad executives at the airline’s headquarters in Abu Dhabi.Main lender State Bank of India (SBI)’s top executives were also a part of the meeting.
How much money does Jet need?
Although a Rs. 1000 crore investment from Hinduja Group will give the carrier much needed oxygen, the total investment needed to restart operations is around Rs 5,950 crore. Etihad has said it will on invest Rs. 1,700 crore and acquire 24 per cent stake.