Shares in Jet Airways surged as much as 19.7 per cent on Wednesday after a TV news channel reported Etihad Airways is close to a deal to purchase a 24 percent stake in the Indian carrier, citing unidentified sources.

The channel reported Abu Dhabi's Etihad has already paid a "token" amount of $70 million, and will likely pay $400 million in the first tranche of the deal, the channel reported.

Jet shares were up 17.7 per cent as of 1:22 p.m.