Rakesh Jhunjhunwala buys stake in Jet Airways

Jhunjhunwala picked up a substantial number of shares in the Initial Public Offering of InterGlobe Aviation.

Investor Rakesh Jhunjhunwala on Friday picked up 1.05 per cent stake in Jet Airways for Rs 50.5 crore (Rs 505 million) through an open market transaction.

According to the bulk deals data available with the National Stock Exchange (NSE), Jhunjhunwala's Rare Enterprises acquired 1,195,000 shares of the private airline.

The shares were bought at an average price of Rs 422.7.

On Thursday, Jhunjhunwala picked up a substantial number of shares in the Initial Public Offering of InterGlobe Aviation, which runs low-cost airline IndiGo.

Last year, he had purchased shares in aviation company SpiceJet.

Following the transaction, shares of Jet Airways on Friday surged 11 per cent to close at Rs 445 on the NSE.

During the September quarter, Jet posted a consolidated net profit of Rs 83 crore (Rs 830 million), against a net loss of Rs 43 crore (Rs 430 million) a year ago.

Also, total sales grew to Rs 5,504 crore (Rs 55.04 billion) during the quarter under review as compared to Rs 5,092 crore (Rs 50.92 billion) in the same period last year.