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Jet Airways Shares Rebound, Surge 76% From Record Low

Jet Airways Shares Rebound, Surge 76% From Record Low

Breaking its 13-day losing streak, shares of the grounded-carrier Jet Airways surged as much as 76 per cent from record low of Rs 27 on the BSE. On the NSE, shares surged as much as 45 per cent to intraday high of Rs 47.90 from yesterday's closing price. "A bounce back was due but since the on ground condition of the airline is dull, the surge in the stock price is unlikely to stay for long," news agency Indo-Asian News Service (IANS) quoted Deepak Jasani of HDFC Securities, as saying. 

At 2:33, Jet Airways' shares were trading 39.12 per cent or Rs 12.95 higher at 46.05 on the BSE. On the NSE, the stock was trading at Rs 45.55, up 37.61 per cent.

The company also announced the resignation of two independent directors - Ashok Chawla and Sharad Sharma - on Tuesday, giving another signal that the chances of the airline's revival were remote. 

On Monday, the consortium of 26 banks, to which Jet Airways owes over Rs. 8,500 crore, decided to take the grounded carrier to the National Company Law Tribunal to recover their dues. Jet Airways stopped flying on April 17 after it ran out of cash and the unpaid lessors took away most of its operational airplanes. 

The State Bank of India (SBI)-led consortium of lenders to Jet Airways said on Monday that it had decided to "seek resolution under the Insolvency and Bankruptcy Code (IBC) as only a conditional bid was received and requirement of the investor for Sebi exemptions and resolution of all creditors is possible under IBC".

(With IANS inputs)