Bengaluru: Shares of debt-ridden airline Jet Airways hit a record low when it plunged nearly 13 percent in Tuesday morning to settle at Rs 109.35, touching a new low in the last 52 weeks. The plunge occurred a day after reports in some sections of the media said that Hinduja Group and Etihad Airways may not invest in the airline and the downward trend looks set to continue. It’s noteworthy that the market had kept its faith in the airline even at the time it was shutting down operations. The shares at the time had not taken such a hit and had continued to bob in the hope that Jet would, after all, find an investor. Jet was forced to shut down operations in April and its lenders have been looking for a bidder since then.

What did the reports say?

According to a report published in The Mint newspaper, Hinduja Group is believed to have decided to halt negotiations to pick up a stake in the beleaguered airline and Etihad, on the other hand, has decided to put its plan of investing further into the airline on hold as of now, sources were quoted as saying. Promoters of Hinduja Group have expressed concerns over the ongoing government investigations into Jet Airways — a matter that has led potential investors to develop cold feet towards investing in the airline.

The backdrop

Etihad, which owns a 24 percent stake in the airline, had submitted a bid for the airline last month. Hinduja Group, on the other hand, was said to be considering putting in an offer. Neither of the two has commented on the matter so far.