The new owners of Jet Airways have proposed to keep the airline listed with the existing public shareholders getting 1 share for every 100 shares they currently own.
“The SRA (Kalrock-Jalan) clarified that, for every 100 existing shares held by the public shareholders, they will be entitled to 1 (one) share in Jet 2.0, post the re-constitution of share capital,” the NCLT document showed.
According to the debt resolution plan approved by the NCLT, equity shares held by the former promoters, Etihad and financial institution, and all of the preference shares held by the former promoters and Etihad shall stand fully extinguished. Kalrock Jalan has proposed to pay a fixed sum of ₹10,000 to the existing shareholders of the airline other than public shareholders.
Kalrock-Jalan will invest a maximum sum of ₹600 crore in the equity of the airline which will give them 90 per cent stake in the company. Public shareholding will be reduced to about 0.21 per cent.
However, the new owners will have to ensure that the public shareholding is restored to at least of 10 per cent within a maximum period of 18 months and subsequently to 25 per cent within a maximum period of three years. “The SRA proposes to restore the public shareholding in the corporate debtor through the issuance of fresh shares of the corporate debtor to the public, at market price, by way of a FPO, which process shall be carried out in compliance with applicable laws,” NCLT said.