Jet Airways seeks shareholders' nod to raise $300 million

Jet Airways has sought the approval of shareholders to raise up to USD 300 million (about Rs 1,843 crore) through issue of securities to Etihad on a private placement basis.

UAE-based Etihad Airways PJSC holds 24% stake in the domestic carrier.

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Jet Airways plans to raise up to $300 million through the issue of securities to Etihad, according to a postal ballot notice sent to its shareholders seeking their approval for the proposal.

It has sought nod "to offer, issue and allot secured and/ or unsecured, listed and/or unlisted non-convertible debentures and/or subordinated debt instruments and/or other debt securities or bonds for an aggregate value of up to $300 million on a private placement basis to Etihad Airways...", the notice said.

During the quarter ended September 2014, Jet Airways had reported 96 per cent reduction in net losses on a one-time income by way of sale of JPmiles to Etihad.

The Rs 305 crore income from sale of its loyalty programme to equity partner Etihad helped Jet slash losses by 95.7% to Rs 43 crore.

It had reported a whopping Rs 999 crore net loss in the same period a year ago.

Shares of the company closed marginally down at Rs 434.85 on the BSE on Friday January 23, 2015.