ET has reported that Jet Airways has sought the permission of FIPB for stake sale to foreign investors. The promoters propose to reduce their holding from 80% to 42 %. The foreign shareholding is proposed to increase fron under 5% to 49%.
The promoters fear that domestic investors have no appetite for the shares of th company. What more can the promoters expect. What loyalty can they claim having made the IPO @ Rs 1100 and the share currently trading at Rs 300.
promoters sale is expected at rs360 levels n normally market price will be abt 10% lower to such price n cmp of rs325 already looks fully valued! it is better to be sidelines to be in this stock than going long! ofcourse, shorting too not advisable due to huge promoters holding! - gupta.
other positives now airindia strike, atleast another one week jet/kfa bookings will be full. fuel price is stable n strong rupee too should help jet air in very short term! - gupta.
The share price has risen from Rs 252 at time of applying to FIPB to Rs 432 at the time of receipt of the permission. Clearly the promoters will now ask for higher price from FIIs in their QIP issue proposed.
| NIFTY 
