Jet Airways stock nearly doubled in a day as the rumour mill in the market goes berserk
At 12.46 p.m., the Jet Airways stock was trading at Rs 41.75 a share, or at 26.13 per cent higher than its previous close on Wednesday.
"A bounce back was due but since the on ground condition of the airline is dull, the surge in the stock price is unlikely to stay for long," said Deepak Jasani of HDFC Securities.
The company also announced the resignation of two independent directors -- Ashok Chawla and Sharad Sharma -- on Tuesday, giving another signal that the chances of the airline's revival were remote.
Besides owing Rs 8,500 crore to public sector banks, the airline has a total liability of about Rs 25,000 crore, which includes dues of operational creditors.
Running out of cash, Jet Airways suspended its entire operations on April 17. The government, subsequently, re-allocated the carrier's slots and foreign traffic rights to rival carriers.