Jet Airway soars as Goyal agrees to exit

The stock of Jet Airways was surging in Friday's morning session as the market expected a resolution of its financial crisis with Etihad agreeing to rescue the ailing airline.

Market was abuzz with news that Jet Airways has accepted the Abu-Dhabi-based Etihad's bailout plan, which also means the resignation of founder promoteer Naresh Goyal from the company's board.

The initial information in the market suggests that Etihad will increase its stake to 40 percent from the existing 24 per cent, whereas Goyal-led promoter stake will be cut to 22 per cent from the existing 51 per cent and Goyal's son Nivaan Goyal will be part of the company's board. This also implies that Goyal has agreed to Etihad evaluating the airline's fair value at Rs. 150 per share.

On Friday, the stock of Jet Airways opened at Rs. 239.75 per share and hit an intraday high of Rs. 281.50 per share. At 10:01 the stock was quoting Rs. 266.75 per share, up by Rs. 29.35 or 12.36 per cent on BSE. The benchmark index BSE SENSEX was up by 186.97 points or 0.52 per cent at 36,443.66, before the announcement of the Interim Budget 2019.