Jet Airways’ share sale via OFS under-subscribed

Jet Airways’ public issue to sell over 43.17 lakh shares through the offer for sale (OFS) route was subscribed by slightly over 69 per cent

Written by ENS Economic Bureau | New Delhi | Published: May 31, 2013 1:18 am

Jet Airways’ public issue to sell over 43.17 lakh shares through the offer for sale (OFS) route was subscribed by slightly over 69 per cent,enabling the carrier to raise over Rs 222 crore.

With the issue,which was aimed at reducing promoters’ stake to meet Sebi guidelines of 25 per cent public float,falling short of full subscription,the company needs to come up another offering before the June 4 deadline set by the market regulator.

“The company has only a few days left to meet the Sebi deadline. It can try to bring another OFS in these days but the larger question will remain what will happen if that too does not get subscribed fully”,said Jagannadham Thunuguntla,head of equity research at SMC Capital.

The Jet issue received 29,86,022 bids till 1530 hrs,as against 43,17,697 shares on offer,PTI said quoting data from the NSE.

The promoter entity of Jet Airways,Tail Winds,had set the floor price at Rs 510 a share for 5 per cent stake-sale through the OFS route. Shares of the company on Thursday closed 1.22 per cent lower at Rs 528.55 on the BSE.

According to end-March shareholding data,Goyal and other promoters held 80 per cent in Jet Airways. As part of the carrier’s deal with Abu Dhabi-based Etihad,Goyal had last week bought back around 28 per cent holding from Tail Winds,which is fully-owned by him.

Jet Airways has reported a higher net loss of Rs 495.53 crore for the fourth quarter ended March 31 compared to loss of Rs 298.12 crore in the same period year-ago.

With the Sebi deadline around the corner,apart from Jet,eight companies hit markets with their respective OFS issues on Thursday to achieve the 25 per cent minimum public shareholding. While six of them,including Adani Enterprises and Essar Shipping saw their issues getting subscribed,the issues of Essar Ports,along with Jet Airways,could not get full subscription for the shares under offer and that of Tata Teleservices was hugely under-subscribed,according to data with the bourses.

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