Kingfisher Airlines at record low after lenders invoke pledge shares

Kingfisher Finvest India and UB Holdings combined holding has declined to 28.57% from 32.29% on account of invocation of pledge created in favor of lenders.

Kingfisher Airlines is locked in lower circuit of 5% for a second consecutive day at Rs 6.87 on BSE after the company said that lenders have sold an additional 26.86 million equity shares held by its promoters in open market.

“Kingfisher Finvest India and United Breweries (Holdings) combined holding in the company has declined to 28.57% on account of invocation of pledge created in favor of lender,” Kingfisher Airlines said in a filing.

Kingfisher Finvest India and United Breweries (Holdings) held total 32.29% stake at the end of December 2012 quarter.

Kingfisher Airlines owes over Rs 7,500 crore to banks and the action by lenders is seen as a big jolt to Vijay Mallya's plans of reviving the airline.

A combined 6.34 million shares have already changed hands on the counter till 1132 hours and there are pending sell orders for 1.14 million shares on BSE and NSE.

Meanwhile, the stock has underperformed the market by falling 54% so far in current calendar year 2013 compared to 4.4% fall in benchmark Sensex.