Jet-Etihad deal will infuse Rs 600 mn cash, but long-term outlook cautious: Mahantesh Sabarad
Jet Airways on Wednesday announced that it would sell a minority stake to Gulf carrier Etihad Airways at Rs 754.74 per share. According to Mahantesh Sabarad, senior vice president of equity research at Fortune Equity Brokers, the deal is good for Jet Airways in the short term as entails a substantial cash inflow of Rs 60 cr against a debt of almost Rs 200 cr. However, he remains cautious on the long-term impact of the deal, which, he says, would make Jet a feeder carrier, constraining growth in its profitability and topline.
