Jet Airways Shares Nosedive 41%, Over Rs 300-Crore Investor Wealth Wiped Off

Jet Airways shares nosedived to record lows on Tuesday, wiping out more than half of the company's market value, a day after creditors said that they plan to begin insolvency proceedings against the grounded airline. Jet Airways stock plunged as much as 53.72 per cent to a record low of Rs 31.65 in intraday trade on the National Stock Exchange (NSE). On the Bombay Stock Exchange (BSE), Jet shares slumped 52.78 per cent to an intraday low of Rs 32.25 apiece.

Jet Airways shares ended 40.78 per cent lower at Rs 40.45 apiece on the BSE, and 40.79 per cent lower at Rs 40.50 on the NSE. 

Investors' wealth worth Rs 316.37 crore was wiped off on Tuesday. Jet's market capitalisation stood at Rs 459.50 crore at Tuesday's closing price, as against Rs 775.87 crore the previous day, according to data from the BSE.

According to news agency Reuters, insolvency proceedings against Jet Airways are likely to begin this week. The National Company Law Tribunal (NCLT) could hear insolvency petitions filed by the carrier's operational creditors for recovery of dues on June 20, the report said.

Last week, the National Stock Exchange said Jet Airways shares would be pulled out of derivative trading, citing the embattled carrier's failure to respond to queries about rumours in the market. Jet securities will be moved to the trade-for-trade segment with effect from June 28 as a "preventive surveillance measure" from the current rolling segment which allows daily trading, the stock exchange had said. 

Jet was forced to suspend all of its flight operations indefinitely on April 17 after running out of money and failing to secure funds. It is saddled with a debt pile of more than Rs 8,000 crore and owes vast sums to lessors, suppliers, pilots and oil companies.

Since the grounding of the airline, Jet Airways shares have fallen 73.91 per cent as of Monday's closing price.

Jet and its lenders have been searching for new investors but have failed to agree a proposal.

(With inputs from agencies)