It will also raise an additional $300 million through either a global depository receipts or secondary capital issue in six months. A senior Jet Airways executive confirmed this plan.
The Naresh Goyal-promoted airline has firmed up plans to acquire 30 aircraft including Airbus and Boeing for $2.4 billion. The airline is scheduled to begin taking delivery of the new aircraft in 2007.
Recently, the company had selected CF6-80E1 engines from GE Aviation, an operating unit of jet engine manufacturer GE. The engine order is worth $300 million.
The company will place a special resolution pertaining to the proposed fund raising to the shareholders at an extra ordinary general meeting on Tuesday.
The company has planned to raise an aggregate amount of $800 million inclusive of greenshoe options on the issues.
Sources said the airline was at an advanced stage of negotiations with advisors, lead managers and underwriters for the proposed issue. Three major banks have pitched for the issue.
The EGM will also discuss enhancing investment limits of foreign institutional investors from 24 per cent to 49 per cent of the paid up share capital of the company, subject to necessary approvals and provisions.
The ruling norms do not permit more than 49 per cent foreign direct investment in the aviation industry. The company will also seek the shareholders' permission on enhancing its borrow limit to Rs 15,000 crore (Rs 150 billion).