Jet Airways shares gain over 7% on Cabinet nod to Etihad deal

Shares of Jet Airways on Friday soared over 7 per cent after the Union Cabinet cleared the company's proposed sale of 24 per cent equity to Abu Dhabi-based Etihad.

Cheering the move, shares of Jet opened the day on a bullish note and further jumped 7.26 per cent to Rs 414.70 on the Bombay Stock Exchange.

On the NSE, the scrip surged 7.24 per cent to Rs 414.60.

Paving the way for the biggest ever foreign investment in India's aviation sector, the Union Cabinet on Thursday night cleared Jet Airways' proposed sale of 24 per cent equity to Etihad, days after the Rs 2,058-crore (Rs 20.58-billion)

deal got regulatory clearances.

The proposal was of Etihad to subscribe 27,263,372 Jet shares of Rs 10 each, amounting to 24 per cent of post-issue paid-up equity share capital for Rs 2,057.66 crore (Rs 20.57 billion).

The Foreign Investment Promotion Board had cleared the deal on July 29 with some major riders to maintain effective Indian control over the airline after the stake sale to Etihad.