"That's a good amount, I'd take that as a big positive," said Mayur Milak, a Mumbai-based analyst at IndiaNivesh Securities Ltd. "Crude has also came down from $85 to $60 and operational metrics have become more favourable. Once you get the money, that definitely adds to the sustainability of operations."
Representatives for SBI and Jet Airways
didn't immediately respond to emails seeking comment. Etihad declined to comment. Jet Airways' shares, which has dropped 73 per cent in the past year, gained 1.4 per cent at Rs 224.25 in Mumbai on Wednesday.
Under one proposal, Etihad, which owns 24 per cent of Jet Airways, will raise its stake to almost 44 per cent by boosting capital at Rs 150 a share, the people said. Goyal's stake would fall to about 22 per cent from 51 per cent, and lenders would end up with more than 15 per cent after swapping a part of Jet's loans to equity, the people said.
A final decision is pending as the plan needs the approval of the Securities and Exchange Board of India, the market regulator, the people said.
Any agreement to avert a collapse of the Mumbai-based airline would help save 23,000 jobs and spare Prime Minister Narendra Modi the embarrassment of a failed business on his watch months before elections.
Jet Airways, which started operations more than two decades ago after India ended a state monopoly in aviation, has piled on debt as low-cost carriers lured fliers away with their cheaper, on-time, no-frills flights. With cost-conscious travellers, India has been a tough market for airlines. Kingfisher Airlines Ltd collapsed earlier this decade while state-owned Air India has survived on repeated bailouts.
Jet Airways's extraordinary general meeting later this month in Mumbai will seek shareholder approval to increase authorised share capital by issuing equity and preferred shares.