Shares of Jet Airways India today surged about 10 per cent, adding Rs 432 crore to its market capitalisation, amid reports Abu Dhabi’s Etihad Airways may buy some stake in the Indian carrier directly from promoters.

Following the speculation, shares of the company rallied over 13 per cent in intra-day trade but pared some gains to settle at Rs 554.10, up 9.93 per cent on the BSE.

At NSE also, the stock ended 9.38 per cent up at Rs 552.

“The scrip jumped in a knee-jerk reaction to media reports that Etihad may buy some stake from the owners,” said Ashika Stock Brokers, Head Research, Paras Bothra.

The company added Rs 432 crore to its market value that rose to Rs 4,783 crore.

In terms of volume, 20.42 lakh shares of the company changed hands on the BSE, while more than 60 lakh shares were traded on NSE.

As per media reports, Etihad may buy the remaining stake by issuing preferential shares.

Etihad is reported to be buying 24 per cent equity in Jet Airways for about Rs 1,800 crore.

The total promoters’ holding in Jet stands at 80 per cent at the end of December quarter.

In the stock market, the BSE benchmark index Sensex ended at 19,683.23, up 269.69 points.

(This article was published on March 8, 2013)
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