Kingfisher Airlines at 7-month high, surges 30% in eight days

Kingfisher Airlines is up almost 5% for the eighth day in a row, locked in upper circuit at Rs 17.27 on the BSE after it capped foreign portfolio investment in the airline at 3%, making space for a foreign investor to buy as much as 46% of the ailing air carrier.

A combined 2.06 million shares have already changed hands on the counter so far and there are pending buy orders for 18.22 million shares on the BSE and NSE at 1329 hours.

“The board of directors has been deliberating various alternatives to improve the financial position of the company in the best interest of all stakeholders. 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 filing.

The board appreciates that foreign investment (other than investment from NRI) in the company is regulatory capped at 49%, it added.

As on September 30, 2012, foreign institutional investors (FIIs) held 2.4% stake in the Vijay Mallya-led UB Group company, the BSE data show.