Shares of cash-strapped Jet Airways see a sudden recovery of as much as 150 percent after hitting its lowest price ever on Thursday. The stock that closed at Rs 33.10 on Wednesday, dropped to a low of Rs 26.55 apiece in early trade on Thursday, only to make a sudden recovery and touching an intrady high of Rs 82.75 on NSE. It closed 122.21 percent higher at Rs 73.55.
The change comes amid a Bloomberg report that said an order on the whether or not the bankruptcy case will be admitted on the airlines will be passed by the National Company Law Tribunal (NCLT) at 5 pm today. Analysts says that the price spike shows expectations of a positive outcome from the hearing.
The stock recovered the two-straight days of losses made after the lenders consortium, led by the State Bank of India (SBI), said that it had decided to take Jet Airways to the NCLT, seeking a resolution for the cash-strapped airline under the Insolvency and Bankruptcy Code (IBC).
The decision was taken at their meeting on Monday, after failing to come up with a revival plan in over five months.
"Lenders have decided to seek resolution under IBC since only a conditional bid was received and requirement of the Investor for SEBI exemptions and resolution of all creditors is possible under IBC. Lenders led by State Bank of India have been taking efforts to find a resolution for Jet Airways outside IBC but in view of the above, lenders have decided to seek a resolution within the IBC process," the SBI said in a statement on Monday, after market hours.