Jet Airways down 4% even as shareholders approve Etihad deal

MUMBAI: Shares of Jet Airways today slumped as much as four per cent even as shareholders of the company approved the Eithad deal.

Shares of the company opened on bullish note but could not hold ground even as its shareholders approved the Etihad deal and its Chairman said that the deal with the Abu Dhabi based carrier would boost its profitability and cut costs.

Shares of the company opened at Rs 586, little higher than the previous closing price but soon lost ground and declined as much as 3.94 per cent to an early low of Rs 561.20.

Similar movement was witnessed on the National Stock Exchange as well, where the stock after opening at Rs 585, fell 3.98 per cent to an intra-day low of Rs 563.05.

The shareholders of the company approved the proposed issue of shares on a preferential basis to Etihad. However, these shares would be allotted after completion of all regulatory approvals.

The deal is being looked into by Competition Commission of India (CCI) and Securities and Exchange Board of India ( Sebi) among other regulators.

Addressing the Extra-Ordinary General Meeting, Jet Airways Chairman Naresh Goyal today said this strategic alliance would improve the Indian carrier's profitability and lower the costs.

The company, however, deferred a proposal to amend its Article of Association, approval for which was also scheduled to be sought at today's EGM.