The carnage in the share price is also reflected in the company's market capitalisation, which has plunged 50% and currently stands at Rs 459.50 crore
Hitting a fresh record low, Jet Airways shares continued to nosedive and crashed over 40% on Tuesday, after revival hopes of the airline looked bleak.
Jet Airways shares maintained its downward spiral for the thirteenth straight session after lenders took the ailing carrier to the bankruptcy court to recover their dues worth over Rs 8,000 core, instead of an outright sale to the lone bidder.
Jet Air shares fell to an all-time low of Rs 32.25 intra-day before recovering marginally to close at Rs 40.45 a piece, compared to its previous close of Rs 68.30 on BSE. The carnage in the share price is also reflected in the company's market capitalisation, which has plunged 50% and currently stands at Rs 459.50 crore. In the past 12 days, Jet Airways share price has tumbled nearly 60%.
On Monday, State Bank of India-led consortium of lenders after a meeting decided to move the company to the National Company Law Tribunal (NCLT) to initiate insolvency proceeding against the debt-laden airline, as none of the offers from the potential bidders could materialise.
On Monday, SBI, in a statement after the meetings of the lenders, said, "After due deliberations, the lenders have decided to seek resolution for Jet Airways under the bankruptcy code since only a conditional bid was received."
Hopes of a possible collective stake acquisition by the London-based Hinduja Group and Abu Dhabi-based Etihad Airways also failed to materialise.
On June 14, the scrip had tanked 23% after both the stock exchanges, BSE and NSE, decided to pull out the scrip from Futures and Options (F&O) trading from June 28. The exchanges have also decided to move the stock to 'trade-to-trade' segment, effective June 28, till further notice.
Once the largest private sector airline company in the country, the company stopped flying on April 17 after it ran out of cash. The unpaid lessors took away most of its operational aircraft.
On May 30, the cash-strapped Jet Airways had said that it is not in a position to consider and approve the audited financial results for the fourth quarter of 2018-19.
According to an analyst, on condition of anonymity, the shares have seen a rapid fall since the joint statement from the stock exchanges.
"No one expects the company to revive now. Investors were pinning hopes on SBI chairman's statement that they will try to revive it. But, taking it to NCLT ends all the hopes now, as nobody will be ready to take 90-95% haircut. If that is the case, lenders can better write it off. If investors are rational, the Jet share price should become zero," the analyst said.
A K Prabhakar, head research, IDBI Capital, said there is very little scope of a turnaround, and he would definitely not advise investors to engage in the Jet Airways counter.
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On Monday, State Bank of India-led consortium of lenders after a meeting decided to move the company to the National Company Law Tribunal (NCLT) to initiate insolvency proceeding against the debt-laden airline, as none of the offers from the potential bidders could materialise.
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