Big decline expected in stakes of Jet Airway’s shareholders

The stakes of Jet Airways’ shareholders will decline by 0.2 per cent upon its takeover by the Jalan Kalrock Consortium. As per official documents, the consortium has made a proposal to reframe the shareholding from the present 25 per cent to 0.2 per cent, which will almost erase their present market value. The company currently has a market size of over Rs 8 billion. This reconstitution is expected to be restored, as per the plans, to 10 per cent in 18 months and 25 per cent in three years. Post-acquisition plans also involve the issuance of 89.7 per cent of equity by shares to new promoters and 9.5 per cent equity to assenting financial creditors through debt conversion.