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Jet Airways board approves raising up to $300 m via NCDs

While the timeline of the fundraising has not been outlined, the move will help Jet Airways bring down its debt.

Jet Airways board approves raising up to $  300 m via NCDs

The board of Jet Airways  has given its nod to raise long-term finance of up to USD 300 million via redeemable preferential shares or non-convertible debentures (NCDs). The fundraising will be its largest after Etihad’s USD 330-million investment in the airline.

While the timeline of the fundraising has not been outlined, the move will help Jet Airways bring down its debt.

Meanwhile, the airline has reported its first quarterly profit since 2012 on Friday, thanks to the sale of its frequent flyer business, but the airline continued to lose money once one-off gains were excluded.

Jet, which has struggled to make money amid fierce competition for fares and high operating costs, said net profit totalled Rs 69.8 crore in the three months to September 30 after it banked a Rs 305 crore gain from the sale of its Jet Privilege frequent flyer programme.

Excluding the sale, Jet, which is targeting a return to profitability by 2017, lost Rs 235 crore in the quarter, less than the Rs 833 crore it reported a year earlier after operating income rose and fuel costs fell.

Jet Airways stock price

On November 07, 2014, Jet Airways closed at Rs 251.45, up Rs 7.35, or 3.01 percent. The 52-week high of the share was Rs 354.40 and the 52-week low was Rs 203.50.


The latest book value of the company is Rs -196.11 per share. At current value, the price-to-book value of the company was -1.28.

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