Recently, Indian banks have agreed to acquire up to 20 percent stake in Jet Airways. It has also been reported that the Hinduja group may invest Rs.1000-Rs.1500 crore in Jet to revive its operations. However, the Hinduja group is not that keen to exceed its shares beyond 30% in the airline. The company is also in talks with Etihad to acquire a stake in the airline.
According to Lender’s consortium, led by State Bank of India (SBI) the banks will hold a stake in the airline up to 2 years after which they can sell it or cash out. A spokesperson said “The Hindujas are unwilling to invest a bulk amount. In that scenario, banks will propose to hold the remaining 20 percent stake for a certain period with terms and conditions, which will allow them to cash out after two years,”. Jet Airways’ Chairman, Naresh Goyal’s stake is already pledged with Punjab Bank of India which is the second highest exposure after SBI.