The decision to raise funds through rights issues comes after the domestic lenders decided to convert existing debt into 114 million shares at a consideration of ₹1 according to Reserve Bank of India (RBI) norms.
Jet Airways promoter Naresh Goyal has made a financial offer to SBI to retain control of the airline, even as Etihad Airways sought to oust him in exchange for much needed funds.
The plan could see Etihad Airways raise its stake from the current 24%, and Jet Airways’s promoter and founder Naresh Goyal cede control of the airline.
The resolution plan comprises fresh equity infusion and restructuring of $450 million of its loans.
The airline is seeking to sell only a portion of its 49.9% stake in Jet Privilege, and will keep a significant stake after any deal.
The carrier needs to urgently raise cash to stay afloat, as a rally in jet fuel prices and a weak rupee have eroded its financial health.
GMR Group is also in talks AION Capital to raise around $500 million to buy out existing PE investors before its planned IPO
Jet Airways had earlier informed lenders that it will raise about Rs3,500 crore over the next six months through a stake sale in its loyalty programme.
Jet Airways, in which Etihad Airways of Abu Dhabi has a 24% stake, is facing the brunt of sharply higher costs, especially of crude oil, intense competition in the local market, as well as rising debt and losses.
Air India has a net debt of $7.6 billion, including $2.9-$3 billion of aircraft debt.