Mumbai based Jet Airways stock has surged almost 150 percent this year and is the best performing airline. However, Jet Airways hasn’t flown even a flight since it was declared bankrupt but still has got the tag of the world’s best-performing airline in terms of share values.
The aviation sector is going through the adverse effects of COVID-19 lockdown which was responsible for the shutdown of airlines for months. Jet Airways was India’s biggest private aviation company before being bankrupt. The airline has almost 17,00 creditors that are claiming $3.4 billion and the airline has no employees to speak off.
Ajay Srivastava, managing director of advisory firm Dimensions Corporate Finance Services said that some investors are buying the companies shares by observing the growth in shares but as the company is going through the process of bankruptcy, they will not be able to get much from the airline as retail investors are the last ones to get anything out of bankruptcy.
The new investors may be hoping Jet Airways goes “the Ruchi Soya way,” Srivastava said, referring to a food company run by a yoga guru whose shares rallied after an insolvency plan was approved. Its shares surged almost 500-fold on tiny volumes before paring gains after the company was acquired by Baba Ramdev’s Patanjali Ayurved Limited.
