Kingfisher gains 2% on hopes of LIC-lifeline

Kingfisher Airlines has added 2% at Rs 24.45 in the morning deals over reports that the government has decided to ask the Life Insurance Corporation (LIC) to consider picking up 10% stake in the troubled Kingfisher Airlines.

“The government has asked LIC to consider it, but the final decision will be taken by the insurer," said an official familiar with the development. “If a company like LIC, the largest domestic institutional investor, puts money in Kingfisher Airlines, it will give confidence to the lenders as well," he added.

Meanwhile, the National Stock Exchange (NSE) has removed Kingfisher Airlines from the futures and options (F&O) list. Accordingly, contracts will not be issued for the months beginning February 2012. “Existing unexpired contracts for expiry months of December and January would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months," the exchange said in a circular on Friday.

The scrip opened at Rs 24 and has, so far, touched the day's high at Rs 25. Around 706,139 shares had changed on the BSE counter till 0952 hours.