Jet Airways may raise Rs 40 billion via rights issue if Etihad open offer fails

Reportedly, Jet Airways is considering raising Rs 40 billion through a rights issue if SEBI denies an exemption to Etihad Airways from making an open offer in lieu of raising its stake in the cash-strapped carrier. Jet Airways’ promoter Etihad Airways and the airline’s lenders will subscribe to the rights issue as part of the resolution plan. The decision to raise funds through a rights issue comes after domestic lenders decided to convert existing debt into 114 million shares at a consideration of Re 1 according to RBI norms.

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