The Hindu Business Line : Jet Airways' shares list at over 18% premium

PREMIUM SHOW: (From right) Mr Naresh Goyal, Chairman, Jet Airways, Mr Wolfgang Prock-Schauer, CEO, and Mr Saroj Datta, Executive Director, look at the listing of the airline's shares on National Stock Exchange in Mumbai on Monday. — Paul Noronha

Mumbai , March 14

THE Jet Airways shares today made their debut on the stock exchange at a premium of more than 18 per cent to the issue price of Rs 1,100. On the first day of trading, the stock recorded huge volumes, both in the cash and the derivatives segment.

Opening at Rs 1,155 on the NSE, the share hit a high of Rs 1,338 before closing at Rs 1,304.20, making a gain of 18.56 per cent. A total of 1.27-crore shares were traded of which only 25.61 per cent were for delivery.

On the BSE, the scrip opened at Rs 1,211 and closed the day at Rs 1,305. It hit a high of Rs 1,339 and a low of Rs 1,172 intra-day. Of the 68.13-lakh shares traded for a total volume of Rs 855.59 crore, 26.79 per cent were for delivery. The total market capitalisation of the company is put at Rs 11,250 crore.

According to brokers, Capital International bought 22 lakh shares of Jet Airways under two block deals on Monday.

Mr S. Ramesh, Executive Director, Kotak Investment Banking, one of the lead managers to the IPO, said the scrip is listed well at an investor-friendly offer price of Rs 1,100. It stabilised at Rs 1,250-1,280 levels during the morning session. These levels, he said, provided good value for both the company and the investor.

Commenting on the volumes, a stock trader said IPOs generally recorded good volumes immediately on opening. Jet Airways, he said, was the first major listing in the aviation segment with the Taneja Aerospace and Royal Airways scrips being much smaller in comparison.

The Jet Airways Chairman, Mr Naresh Goyal, who clicked the mouse to mark the listing on the NSE, said all the 4.5-lakh investors who had applied for the issue had been allotted shares. While 99 per cent of them had subscribed at the top-end of the price band at Rs 1,125, the company had fixed the offer price lower at Rs 1,100 as a gesture of good-will to investors, Mr Goyal said.

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