Jet hits new low, up 150% in closing trade

The stock ended up 90 per cent at Rs 62.85.

Jet hits new low, up 150% in closing trade
Mumbai: Jet Airways has been grounded for over two months but its stock unexpectedly soared as much as 150 per cent on Thursday — one of the highest gains by a stock during a trading session, catching traders by surprise.

The stock vaulted to a high of Rs 82 ahead of the National Company Law Tribunal order on whether the bankruptcy case will be admitted against the airline. Earlier in the day, the stock had hit a day’s low at Rs 27 — which is also its all-time its all-time low.

The stock ended up 90 per cent at Rs 62.85. The stock is due to be excluded from the F&O segment with effect from June 28 and will also be transferred to trade-for-trade segment from that day-which would mean compulsory delivery of shares.


Jet’s sudden surge had traders flummoxed as it caught them off guard. The stock was trading at Rs 48.3 on the BSE at 3.20 pm but a spike in the last ten minutes of trade helped the stock record such sharp gain.

Traders termed the move as largely speculative. “It was more of a speculative move. The stock has been in F&O ban. The stock started flying in the last ten minutes of trade but there is no fundamental reason for the rise,” said a trader.

The stock will be out of F&O ban from Friday. A WhatsApp message doing the rounds among various trader groups on Thursday was that some large industrialists met bank chiefs to consider the acquisition of Jet. This could not be independently verified.
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The spurt happened along with relatively high delivery volumes. Data from NSE show that 9.7 crore shares of Jet were traded against the onemonth average of 1.9 crore shares traded daily. Also, the one-month deliverable to traded quantity has been 10 lakh shares. But on Thursday this figure was 32.41 lakh shares.

The reason for this huge intraday activity is because the share has been in an F&O ban. The stock will be out of the F&O ban period on Friday as the open interest has fallen to 75 per cent of the marketwide position limit.

The airline had announced a temporary shutdown on April 17. Since then, lenders have tried to find a buyer and there have been exits at top management level. The consortium of 26 bankers led by State Bank of India on Tuesday took the airline to NCLT to recover dues of over Rs 8,500 crore.

Analysts said a revival is unlikely.
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“Once it goes to NCLT, the equity value is zero as it has no hard assets. If the airline was taken to NCLT in March, there could have been a resolution but now a revival is almost impossible,” said independent market expert Sandip Sabharwal. “Top management exits have happened, Jet’s slots have been given away to other airlines.”

The NCLT admitted SBI’s insolvency plea against Jet Airways on Thursday. The court has directed the Interim Resolution Professional (IRP) to take control of all Jet assets and try and resolve the matter within three months.
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