Jet Airways shares surge 5% on NCLAT nod for transfer of ownership to Jalan Kalrock Consortium

Shares of Jet Airways were locked in the upper circuit of 5% at ₹44.92 apiece on the BSE on Wednesday, a day after the National Company Law Appellate Tribunal (NCLAT) upheld the transfer of ownership of the beleaguered airline to Jalan Kalrock Consortium. NCLAT's approval comes almost a year after the National Company Law Tribunal’s (NCLT) gave nod to the ownership transfer in January last year.

Jet Airways' market capitalisation stood at ₹510.48 crore with 1,133 shares exchanging hands on the BSE, as against the two-week average of 0.24 lakh shares. At present, the airline's share price is trading 40.3% lower than the 52-week high of ₹75.29, which the company touched on August 24 last year. The share price of the company is trading 26.35% higher than the 52-week low of ₹35.5, which the company touched on July 21, 2023.

In the year-to-date period, the share price of the airline has plummeted 22.59%.

In its latest order on March 12, the appellate tribunal instructed the lenders, led by the State Bank of India, to complete the ownership transfer within 90 days. They have also allowed the Jalan Kalrock Consortium to invest ₹150 crore from their bank guarantee into the Delhi-based airline as an initial payment of ₹350 crore to the lenders. Additionally, the consortium has been directed to obtain the air operator's certificate within the specified time frame. 

A timeline of events

The revival of Jet Airways, which was grounded in 2019 amidst a severe cash crunch, has hit several roadblocks over the years. Following the grounding of the Delhi-based airline, the State Bank of India, its primary lender, approached NCLT for a resolution process. In October 2020, the Jalan-Kalrock Consortium (JKC) emerged as a successful bidder to revive Jet Airways operations. 

In May 2022, DGCA (Director General of Civil Aviation) granted an air operator's certificate (AOC) to Jet Airways to resume flight operations. However, despite getting a green signal from DGCA, the revival plan of Jet Airways has hit several roadblocks owing to non-payment of dues to the lenders. Lenders have alleged that JKC had not provided any funds for the revival of the airline, whereas JKC alleged that lenders had not started the transfer of ownership.

Following this, last year the Jalan-Kalrock Consortium deposited ₹100 crore as payment to lenders in Jet Airways following the National Company Law Appellate Tribunal’s August 28 order. NCLAT has asked Jalan-Kalrock Consortium to pay ₹350 crore to lenders till September 30. The consortium had earlier infused ₹150 crore as a performance bank guarantee in Jet Airways.

Meanwhile, in November last year, the Enforcement Directorate arrested Naresh Goyal, the founder of beleaguered airline Jet Airways in a 2021 money laundering case worth ₹538.62 crore.