Kingfisher Airlines gains over 4% on fund raising plan

Private air-carrier Kingfisher Airlines today surged over 4 per cent in early trade a day after the company announced plans to raise funds through Global Depository Receipts (GDRs).

Shares of the airline rose by 4.51 per cent to Rs 62.55 in early trade on the Bombay Stock Exchange.
On the National Stock Exchange, the scrip gained 4.25 per cent to touch an early high of Rs 62.50.

The airline has plans to raise $100-million via GDR to reduce its debt, which stands at Rs 6,000-crore as on March 31 this year. The decision on the same is likely to be taken in today's board meeting of the company.

The proposed fund-raising of $100-million would be in addition to the $400-million which the company has been mulling to raise through the private equity route for sometime now.

Earlier last month, the company had expressed its plans to hit the market by the end of the current quarter.

Meanwhile, among other aviation counters, Jet Airways and low-cost carrier Spicejet also surged 2.92 per cent and 1.72 per cent respectively in early trade amid reports that the Reserve Bank of India (RBI) has agreed to ease rules of loan restructuring for airline companies.