Jet Airways to raise $ 400 million

Jet AirwaysLeading private Air carrier, Jet Airways has said that it is planning to raise $ 400 million through a share sale to foreign institutions.

The company has sought permission from the government to dilute up to a 20 per cent stake. It plans to invest Rs 450 million in MAS GMR Aerospace Engineering Company

Jet Airways Chairman Naresh Goyal said, "We have already applied to the Foreign Investment Promotion Board. Once approval is granted, I will dilute some... it could be anything up to 20 per cent."

Mr. Goyal did not announce any time frame for the sale and said that it will be done when the company receives the permission from the government. He said that the company aims to add capacity due to the resurgence in passenger demand.

Jet’s standalone net profit grew to Rs 35.20 million in the quarter while revenues rose 30.95% year-on-year basis to Rs 28.05 billion in the April-June 2010 quarter.

The shares of the company rose 1.47%, to trade at Rs 792.50. The shares have outperformed the benchmark index in the one period upto Aug. 26 as Sensex rose 1.14% rise while Jet grew by 26.43%.

The strong performance and a recent report showing rise in passenger numbers indicates that the India aviation sector is growing again. Some of the companies have also come out of the loss making mode, which was a result of global economic slowdown, have recorded profits in recent quarters.

The company plans to add 4-5 Boeing aircraft to its fleet besides replacing its CRJ fleet with six ATRs. The company could add 10-15 per cent capacity, according to Mr. Goyal.