SME Times is powered by   
Search News
Just in:   • Sensex in red; oil and gas stocks slump  • Stress on women's dignity at workplaces: ASSOCHAM  • Infotech's net up by 15 percent  • French companies to continue investing around 1 bn in India  • 'Parrikar playing into hands of private mining firms' 
Last updated: 13 Dec, 2012  

Kingfisher.9.thmb.jpg Kingfisher caps foreign investment limit

Kingfisher.jpg
   Top Stories
» Garment exports up 15.5 pc in FY'13-14: AEPC
» 'India well-poised to play key role in global net governance'
» 110 mn vote in India, BJP says it's 'Modi tsunami'
» Uncertainty in Nokia plant may hit India's telecom exports by 40 pc
» US trade mission headed to India in November
SME Times News Bureau | 13 Dec, 2012
Financially strained Kingfisher Airlines Thursday capped the stake of foreign institutional investors in the company at three percent.

The development is said to help the passenger carrier sell nearly 46 percent of the permitted 49 percent stake in the company to foreign airlines. The rest three percent will remain with foreign institutional investors (FIIs), qualified foreign investors (QFIs) or other non-strategic foreign investment.

Recently, the government allowed foreign carriers to buy up to 49 percent stake in Indian domestic airlines. Before this only FIIs or QFIs were allowed to invest up till 49 percent in the domestic airlines.

Kingfisher is also said to be in talks with Middle East based airlines for a possible stake sale to rescue it from its troubled financial position.

According to sectoral experts, foreign airlines will want to buy a maximum amount of the 49 percent stake, as the investment will be deemed as a long term investment.

"The company has been deliberating various alternatives to improve the financial position. In this connection, it has been advised that a fresh infusion of capital by a financial or strategic, Indian or non-resident investor is a possible alternative," the company said in a statement.

"With a view to keeping the company's capital structure in readiness for transactions, the board has decided no FII, QFI or other non-strategic foreign investment shall be permitted in the company beyond its current level of three percent."

The expected stake sale has helped the company's scrip at the BSE to touch its maximum circuit limit of Rs.17.27 per share, which is a gain of 4.98 percent from its Wednesday's close of Rs.16.45 per share.

The airline has a total debt of Rs.7,000 crore from a consortium of banks.

It has been asked by the Airports Authority of India (AAI) to pay back dues worth Rs.290 crore, or cease operations at Chennai and Kolkata airports.

Other airport operators, including oil companies and vendors, have also not got their dues.

The airline has been asked to prepare a revival plan and present it to the aviation regulator Directorate General of Civil Aviation (DGCA), which will take a final call on revoking the airline's operations licence.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
61.75
60.75
UK Pound
102.45
100.20
Euro
85.65
83.65
Japanese Yen 60.55 59.10
As on 25 Apr, 2014
  Daily Poll
At present, industrial slowdown is the biggest challenge to growth
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(12)
» Poor quality may cost exporters key global markets: Kher(3)
» "Raising funds, hiring talents big challenge for SMEs"(3)
» Global trade: brighter prospects ahead(2)
» An Indian now owns East India Company(2)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter