Redect Consultancy today sold 3.25 million shares of Kingfisher Airlines for Rs 5.74 crore in an open market transaction.
In a bulk deal, Redect Consultancy offloaded 32,50,914 equities of Kingfisher for Rs 17.66 apiece, valuing the deal at Rs 5.74 crore, according to data available on the stock exchanges.
Last week, LKP Merchant Financing had sold 4.35 million shares of Kingfisher for Rs 6.7 crore and Star Investments also offloaded 12.8 million equities (equivalent to 2.22% stake) in the airline for Rs 21 crore.
In February, Kingfisher had alloted equity shares against optionally convertible debentures (OCDs), a development that would help save interest outgo on such instruments.
Kingfisher had issued 79.8 million equity shares in February to three entities -- LKP Securities Ltd, Redect Consultancy and Star Investments -- at a price of Rs 25.01 per share, in lieu of conversion of debentures.
In January last year, Kingfisher had allotted over 70 million OCDs, having an interest rate of 8%, to the three entities.
The conversion of OCDs to equity shares will help Kingfisher reduce its debt burden as it will save on the 8% interest cost.
As per the terms of the OCD issue, the holder had the option to convert the instrument into equity shares within 18 months from the date of issue. The 18-month period ends on July 2, 2012.
Shares of Kingfisher Airlines fell by 6.22% to close at Rs 17.35 apiece on the BSE.