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As Jet Airways decided to shut operations temporarily late evening on Wednesday, the stock prices of the airline nosedived to Rs 217.70 at the time of opening bell on Thursday from the previous close of Rs 241.85.
Read more:Jet Airways lands with a thud as lenders decline interim funding
During the first hour of trading, the airline's stock plunged even further to Rs 175.85 making it a difference of 27.54 per cent. The airline's 52 week low is Rs 163.00.
The scrips of Jet Airways nosedived 32.12 per cent to Rs 163.90 in Sensex and in the broader index, the scrip plunged 31.08 per cent to Rs 165.75.
The airline had announced temporary shutdown of operations because the much needed and the promised interim funding of Rs 1,500 crore had not been infused by SBI and other 9 lenders of Jet Airways.
"Late last night we were informed by SBI, on behalf of the consortium of Indian lenders, that they are unable to consider our request for interim funding of INR 983 crores. Because no emergency funding from the lenders or any other source of funding is forthcoming, it will not be possible for the company to pay for fuel or other critical services to keep the operations going," Vinay Dube, CEO of Jet Airways told his employees in a letter.
"Consequently, with immediate effect we are compelled to cancel all international flights as well as our domestic flights. This decision has been taken after painstaking evaluation of all alternatives and after receiving guidance and advice on the same from the Board of Directors of Jet Airways. We have also informed the DGCA, and the Ministries of Civil Aviation and Finance and other relevant government institutions, of this course of action." Dube added.
The airline already had a gross loan of Rs 8,500 crore. Now, the airline has pending salaries of its 22,000 employees for upto three months. The airline's lessors have already applied to de-register 19 aircraft to DGCA, with 30 aircraft already being deregistered.
Meanwhile, SBI in a statement on Thursday said, "The lenders after due deliberations decided that the best way forward for the survival of Jet Airways is to get the binding bids from potential investors who have expressed EOI and have been issued bid documents on 16th April. Lenders are reasonably hopeful that the bid process is likely to be successful in determining fair value of the enterprise in a transparent manner."
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