Shares of India’s Jet Airways Ltd crashed to record lows on Tuesday, after a report that Hinduja Group and Etihad Airways may not invest in the cash-strapped airline which was forced to stop all flight operations nearly two months back.
Middle Eastern carrier Etihad, which owns about 24% stake in Jet, had submitted a bid for the Indian airline last month, while family-run Hinduja Group was said to be considering putting in an offer.
The Mint newspaper reported that Hinduja had decided to halt negotiations for buying a stake in Jet while Etihad had put its plan on hold to invest further.
Promoters of Hinduja expressed concerns over ongoing government investigations into Jet and insolvency pleas submitted by its creditors, Mint reported, citing a source familiar with the matter.
Jet and Hinduja did not comment on the matter, while Etihad, and SBI Capital Markets, the unit of State Bank of India (SBI) overseeing the sale of the stricken carrier, were not immediately available for comment.
Jet shares, which had shed nearly 69% in one year as of Monday’s close, slumped as much as 14.8% to an all-time low of 106.3 rupees.