Etihad Airways PJSC, the national carrier of Abu Dhabi, is learnt to have initiated a fresh round of talks to bid for Jet Airways through the IBC process.
Etihad had always been interested but wanted a favourable deal, according people familiar with the development.
The foreign carrier, which has 24% stake in the grounded airline, is reportedly gearing up to submit a bid along with the Hinduja Group.
A detailed email sent to Etihad Airways remained unanswered till the time of going to press.
Similarly, an email to the Hinduja Group seeking a confirmation yielded no response.
Negotiations are underway between the two parties, the people said, but they did not elaborate.
The Hinduja Group, which had thrown its hat in the ring, is likely to come in as a financial investor.
Commenting on the development, Ambareesh Baliga, independent equity analyst said. “Yes, people are interested because Jet Airways still has brand equity. They may benefit but the company will offer nothing for retail or other shareholders as their value has been completely eroded.
“It does not make any sense for strategic investors to provide any premium because the company’s net worth is negative. Strategic investors will come at par and the dilution will be so huge that retail investors will be turned into micro minority. There will be nothing left for them,” Mr. Baliga said.