Jet Airways dips on buzz of RoC probe

The stock of Jet Airways dipped extending its losses on Friday after the company confirmed that it has received notification from the Registrar of Companies (RoC) in connection with its financials.

The Registrar of Companies (RoC) has required Jet Airways to give financials details with regards to complaints received by the regulator. The company's employees unions have demanded details on the airline's financial, said news reports. However, the airline has not disclosed what the RoC's notification has specifically asked for.

Earlier this week, the company announced a turnaround plan which hinted about the monetisation of JetPrivilege loyalty programme and wet-leasing its small aircraft fleet to generate working capital. There were news reports that Private Equity (PE) firms including Blackstone, Indigo Capital Partners and TPG Capital are in talks with the company to buy stakes worth US$ 400 million.

Beside the strategic plan includes implementing of cost reductions of around Rs. 2,000 crore, hiring of fuel efficient B737 MAX aircraft, revenue enhancement through pricing initiatives and balance sheet restructuring to reduce interest expense.

For Q1FY19, Jet Airways Group reported a net loss of Rs. 1,326 crores, as against a net profit of Rs. 58 crore in Q1FY18.

At 11:58 hours, the stock of Jet Airways was quoting Rs. 280.00 per share, down by 2.35 per cent on Friday, when the benchmark was at BSE Sensex was at 38,634.99, down 55.11 point or 0.14 per cent.