Jet Airways has seen a notable surge in its share price, hitting a 5% upper circuit. The driving force behind this positive momentum is the recent development regarding the Jalan Kalrock Consortium (JKC), which is poised to become the new promoters of the airline.
In a statement issued by Jet Airways, it was revealed that the Jalan Kalrock Consortium has successfully completed an additional infusion of Rs 100 crore. This move underscores the consortium’s steadfast commitment to the successful revival of Jet Airways. With this latest capital injection, JKC has now fulfilled its total financial commitment of Rs 350 crore equity, as stipulated in the court-approved resolution plan. This achievement signifies a crucial step toward taking control of the iconic airline.
Jet Airways emphasized that the consortium’s strategy for the airline’s resurgence remains unaltered. The new promoters are resolute in their mission to re-establish the airline’s operations, with plans to have it up and running by 2024. The airline is expected to make further announcements regarding its relaunch date in the coming weeks.
On a year-to-date basis, Jet Airways’ stock has experienced a 15% decline. Over the past year, it has fallen by nearly 40%, and in the last two years, it has seen a significant drop of almost 45%.
The consortium, led by UAE-based businessman Murari Lal Jalan and UK’s Kalrock Capital Partners, originally committed to infusing the specified amount by August 31 but requested an extension to meet this financial obligation.
The insolvency resolution proceedings against Jet Airways commenced in June 2019, with the National Company Law Tribunal (NCLT) granting approval to the consortium’s resolution plan in June 2021. However, the plan has yet to be implemented.
The consortium anticipates taking control of the airline by the end of this year and has urged banks to expedite the regulatory process, according to a report from ET published in September.
From a technical perspective, the stock’s day Relative Strength Index (RSI) is currently at 37.6. An RSI below 30 is generally considered oversold, while above 70 is seen as overbought, based on data from Trendlyne. Additionally, the Moving Average Convergence Divergence (MACD) is at -1.5, which is below its Signal and Center Line, indicating a strong bearish sentiment.
