Kingfisher Airlines has locked in lower circuit of 5% at Rs 16.12 on reports that the State Bank of India-led lenders consortium has turned down the company’s Rs 200 crore working loan request.
According to the lenders, Vijay Mallya, the promoter of the debt-laden airline’s did not offer any concrete revival plan as he could not commit on equity infusion by the promoters, the PTI report suggests. Mallya said that the United Breweries Group will be unable to use any proceeds from a possible stake sale in United Spirits to infuse funds into Kingfisher Airlines.
The stock had rallied more than 80% in past two weeks from Rs 8.82 levels. Today, the stock opened at Rs 16.80 and hit a high of Rs 16.91 on the Bombay Stock Exchange. A combined 4.61 million shares have already changed hands on the counter so far and there are pending sell orders for 9.85 million shares on both the exchanges.