Jet Airways gets nod to raise Rs 2,000 crore

Jet Airways has secured shareholder approval to raise additional capital up to Rs 2,000 crore ($400 million).

According to the statement filed to the Bombay Stock Exchange (BSE), the airline said “the shareholders at the extra ordinary general meeting (EGM) of the Company held on September 24, 2009, have passed the requisite resolution regarding the Issuance of additional capital up to US$400 Million pursuant to Section 81(1A) of the Companies Act, 1956.”

The airline has been talking to various bankers to raise this amount through qualified institutional placements (QIP). They plan to raise this capital in 2-3 months, according to an airline official.

Jet has been trying to raise funds through rights issues for the past three years, but have failed in their biddings. “Whenever the airline has been trying to raise funds, the market conditions wasn’t conducive for them,” an aviation analyst told DNA Money.

Analysts say this infusion is required as the airline is in dire need of cash given its expansion plans for the full-service carrier as well as the recently launched low-cost carrier JetKonnect.

Jet Airways suffered a net loss of Rs 225 crore for the quarter ended June 30, 2009 on a total income of Rs 2,428 crore.