Jet Airways share price jumped up by almost seven per cent on Friday following reports that the airline is close to a deal with Indian conglomerate Tata Sons.
The stock was up 6.26 per cent on Friday afternoon and hit a two month high, rallying nearly 60 per cent over the past month.
The debt-laden airline looks set to be bought out by Tata Sons with its board set to discuss terms of a deal that would see it acquire a controlling stake very soon.
Tata Sons chairman Natarajan Chandrasekaran is likely to present a business viability plan to the board today with a proposed acquisition of the cash-strapped company.
Jet Airway’s deputy chief executive and chief financial officer Amit Agarwal had admitted earlier this week that the company was in talks with “multiple interested parties”.
In these talks the company would consider capital infusion and selling six of its Boeing 777 planes along with a stake in its loyalty programme Jet Privilege.
The huge loss in market value for the September quarter was mainly accounted for by rising fuel costs, the depreciating rupee and strong competition from rivals.
It was the third straight quarter of losses for Jet Airways, but the rise in share price today will be welcome news.