Grounded Jet Airways stocks saw a sudden spike on Thursday as its advanced 66 per cent from its intra-day low to hit a high of Rs 44.70 per share during early trade on the BSE.
At 12.46pm, the Jet Airways stock was trading at Rs 41.75 a share, or at 26.13 per cent higher than its previous close on Wednesday.
“A bounce back was due but since the on ground condition of the airline is dull, the surge in the stock price is unlikely to stay for long,” said Deepak Jasani of HDFC Securities.
The state-run State Bank of India (SBI)-led consortium of lenders to Jet Airways said on Monday that it had decided to “seek resolution under the Insolvency and Bankruptcy Code (IBC) as only a conditional bid was received and requirement of the investor for SEBI exemptions and resolution of all creditors is possible under IBC”.
The company also announced the resignation of two independent directors – Ashok Chawla and Sharad Sharma – on Tuesday, giving another signal that the chances of the airline’s revival were remote.
Besides owing Rs 8,500 crore to public sector banks, the airline has a total liability of about Rs 25,000 crore, which includes dues of operational creditors.
Running out of cash, Jet Airways suspended its entire operations on April 17. The government, subsequently, re-allocated the carrier’s slots and foreign traffic rights to rival carriers.