Jet Airways To Mop Up $400Mn Via Rights Issue

The Naresh Goyal promoted airline, Jet Airways has decided to mobilize $400 million through a rights issue to fund its expansion plans. At present, Jet is in talks with investment bankers to finalize the modalities of the rights issue, which is expected in the next four months. Industry experts said that Jet Airways could offer nearly 25 million fresh shares to existing shareholders at the prevailing stock price. However, this will not dilute the stake of the promoter. Jet''s promoter Naresh Goyal owns 80% stake in the airline. Besides raising 15% of the cost of its $2.5 billion bill for 20 wide-bodied aircraft for international operations and 10 Boeing 737s for domestic operations, the airline is scouting funds for working capital and other expansion plans. In addition to $400 million, Jet Airways is also looking at raising $50 million for turning around Air Sahara, which is now re-branded as JetLite.