InvestorQ : Jet Airways is shutting operations as of 17th April night. What happens to the stock price of Jet Airways?
Mary Joseph made post

Jet Airways is shutting operations as of 17th April night. What happens to the stock price of Jet Airways?

Answer
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sara Kunju answered.
1 year ago


The company has a total debt burden of Rs.8500 crore and has been depending on lenders and investors to bail them out. The airline had sought temporary infusion of Rs.1500 crore from lenders to fend off a shutdown which the lenders have refused. The further decisions have to be taken by SBI as it is the largest shareholder in Jet Airways right now. There are two possibilities right now.

Even if the deal happens and Jet manages to repay its creditors, Jet will have to run a skeletal operation and will take a long time to become profitable. Alternatively, the lenders may just sell of the company and its assets piecemeal and look to recover the best that can. In that case, shareholders will be left with zero value. Either ways, the uncertainty is too high and investors should not venture to either buy or hold Jet Airways at this point of time.

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1 year ago


The airline has been debt ridden since 2013 and has posted profits only for 3 of the last 10 years. All possible stock devaluation has already occurred in this period.