Stock up over 4%
Vijay Mallya owned Kingfisher Airlines took off with over 4% gains at Rs 15.05 in the opening deals ahead of its AGM today.
After the AGM meeting, lenders will meet the airlines management on Thursday to know about the carrier’s plan to raise equity capital. This will be the first meeting among the banks and KFA management after the aviation sector was opened to foreign airlines last week.
Meanwhile, the Reserve Bank of India has asked banks not to treat Kingfisher Airlines’ brand as collateral since it is intangible. This is because the loan has turned non-performing for most of the banks. The RBI’s rejection means lenders will have to treat their exposure to Kingfisher as unsecured, for which the provisioning requirement will go up substantially.
The stock opened at Rs 14.90 and has thus far touched a high of 15.35 and a low of Rs 14.51. Around 5.6 million shares have changed hands on the BSE.
Overseas investors pumped in more than Rs 19,000 crore ($3.5 billion) in the Indian stock market in September, the highest monthly inflow in seven ...