Despite all the noise around the dividend payout, look at the QIB investors who have queued up. Many of them with stakes in similar international LCCs. Only the Retail & Employee portion went unsubscribed. The dividend payout by emptying the coffers isn’t reflective of good governance but the owners are confident of the ability of the management and the business to generate free cash flows QoQ & YoY. In an environment like India, where an airline managed to be profitable for 7 years, with hopes that the business environment will only get better and ATF prices trending lower and the imminent addition of Airbus A320neo planes to fleet will only lead to more efficient operations. The retail lot have been put out by the “avoid” ratings by brokers with the short view of no expected listing gains because the issue is richly priced.
I had shares from Jet Airways’ IPO and sold it after a while. Have applied yet again, lets see.
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