Jet Airways climbs 5% as Jalan-Kalrock infuses Rs 100 crore; the airline plans to take flight next year

On September 29, the Jalan-Kalrock consortium infused Rs 100 crore into the grounded carrier, fulfilling its financial commitment of Rs 350 crore, raising Jet Airways' share price by 5% to Rs 55.8.

“With this infusion, the Jalan-Kalrock consortium has fulfilled its total financial commitment of Rs 350 crore equity as per a court-approved resolution plan, and all commitments by JKC now stand fulfilled to take control of the iconic airline,” said a release issued by the consortium.

"The consortium's strategy to revive the airline remains unaltered. The new promoters are determined to re-establish the operations of the airline up and running in 2024,” JKC added.

Jet Airways, formerly India's largest private airline, went down in 2019 after experiencing a severe liquidity shortage that caused it to seek for bankruptcy protection. The airline owed creditors over Rs 18,000 crore, prompting them to commence legal actions for recovery.

The National Company Law Tribunal (NCLT) approved the transfer of Jet Airways to the Jalan-Kalrock consortium, chaired by Murari Lal Jalan and London-based Kalrock Capital, in January 2023. However, due to resolution plans, the consortium encountered a series of roadblocks from creditors.

Naresh Goyal controlled little under 25% of the airline as of June 2023, with Punjab National Bank holding 26.01 percent or 2.96 crore shares. Insurance giant LIC owns 2.14 percent of the corporation, while international carrier Etihad Airways owns 24 percent. Retail investors owned around 21% of the airline.