Shares in India’s Jet Airways on Tuesday rose over seven percent in early trade on reports that it may sell stake to UAE’s Etihad Airways.
The Business Standard newspaper reported, citing a government official, that Jet might raise 16 billion rupees (U.S. $ 292.64 million) from the sale of 24 percent stake to Etihad Airways.
Following the market buzz, the stock opened the day on a bullish note and further jumped 6.13% to 590 rupees (U.S. $ 10.7390) on the BSE.
Market experts said the uptick in the counter is largely on the back of stake sale report regarding the airlines. The stock has rallied nearly 51% last month on stake sale speculation.
There had been reports that top Jet officials have recently been in the UAE to hold talks for a possible deal with Etihad.
Reacting to reports about a possible deal with UAE’s Etihad Airways, Jet had last month said: “We are aware that recently there has been much speculation in the press. The company, however, cannot comment on such speculative reports.”
Jet Airways has risen 65.3 percent since the start of November, as of Monday’s close, on speculation that promoter shareholder is looking to sell a stake.
Shares in other carriers such as SpiceJet rose four percent, while Kingfisher Airlines gained three percent.