Jet Airways scrips tanked over 30 per cent on the BSE during the early trade on Thursday, after "temporary suspension of domestic and international operations" over the refusal of lenders to provide emergency funding.
"It was informed by the State Bank of India (SBI), on behalf of the consortium of Indian lenders, that they are unable to consider its request for critical interim funding," the company said on Wednesday in a regulatory filing.
Reacting to this, Jet fell out of favour among investors, falling as much as 30 per cent on the BSE. On NSE, its scrips fell to its 52-week low, declining over 34 per cent. At 1.07 p.m., Jet Airways on the NSE was trading at Rs 177. 40 apiece, down Rs 63.10 or 26.24 per cent.
The company said on Wednesday that since "no emergency funding from the lenders or any other source is forthcoming, the airline will not be able to pay for fuel or other critical services to keep the operations going".
"This decision has been taken after a painstaking evaluation of all alternatives that were made available to the company and after receiving guidance and advice on the same from its Board of Directors," Jet said in a BSE filing.
On the future course of action to revive the airline the company informed that it now awaits the bid finalisation process by SBI and the consortium of Indian lenders, which will conclude on May 10.
While the Jet Airways stocks tanked heavily on Thursday after being somewhat resilient despite the turmoil, SpiceJet scrips have been gaining for the last five session advancing, surging 47.59 per cent in the period. Indigo has advanced 15.26 per cent in the last six sessions.
Both eyeing larger market share after Jet was temporarily grounded. A Kotak report on Wednesday said that assuming eventual full termination of Jet's operations, Indigo will definitely see market share increase, particularly since it has aggressive plans of capacity addition.
"However, we note that other airlines also have significant capacity addition plans this time each of SpiceJet, GoAir, Vistara and AirAsia have capacity addition plans," the report noted.