Shares of Jet Airways (India) Ltd. on Tuesday fell nearly 41 percent after a State Bank of India-led consortium of lenders referred the crisis-hit airline to the National Company Law Tribunal for insolvency proceedings under India’s bankruptcy law.
Jet Airways shares plummeted 40.78 percent to Rs 40.45 apiece on the BSE. The stock tanked 52.78 percent intraday to hit an all-time low of Rs 32.25. In comparison, the benchmark Sensex rose 0.22 percent to 39,046.34 points.
On the traded volume front, 60.53 lakh shares of the company were traded on the BSE and over 4 crore shares changed hands on the NSE.
NSE and BSE had on June 12 decided to impose trading restrictions on the Jet Airways stock, moving it to the ‘trade-to-trade segment’ from June 28.
Tuesday marked twelve consecutive trading day declines for Jet Airways. The stock has plunged over 73 percent during this time, wiping out Rs 1,253.5 crore from its market capitalisation on the BSE.
On Monday, with seemingly no end to the Jet Airways crisis, lenders decided against an outright sale of the airline to a lone bidder—the Etihad-Hinduja combine—and agreed to send it for bankruptcy.
Once India’s largest private airline, Jet Airways stopped flying in April after it ran out of cash and unpaid aircraft lessors took away most of its 100-odd planes.
Jet Airways has a debt of over Rs 8,000 crore.
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