Kingfisher Airlines gains on reports of submitting new revival plan

Meanwhile, the S&P BSE Sensex was up 88.69 points or 0.48% to 18,503.14.

On BSE, 55.21 lakh shares were traded in the counter as against average daily volume of 22.29 lakh shares in the past one quarter.

The stock hit a high of Rs 7.91 and a low of Rs 7.45 so far during the day. The stock had hit a record low of Rs 7.01 on 13 August 2012. The stock had hit a 52-week high of Rs 21 on 12 April 2012.

The stock had underperformed the market over the past one month till 10 April 2013, sliding 24.83% compared with the Sensex's 6.45% fall. The scrip had also underperformed the market in past one quarter, declining 49.02% as against Sensex's 6.35% fall.

The small-cap company has equity capital of Rs 808.72 crore. Face value per share is Rs 10.

As per reports, Kingfisher Airlines has on Wednesday, 10 April 2013 sought approval from civil-aviation regulator Director General of Civil Aviation (DGCA) to restart the grounded airline. Under the plan, Kingfisher parent UB Group initially will invest Rs 650 crore ($119 million) for reviving the carrier. The carrier has submitted letters from private airport operators in India, parts suppliers, fuel companies and aircraft-leasing companies as part of a request for getting its airline license renewed.

Reports added that the DGCA had sought a written commitment from the promoters of the airline that additional funds for the airline will be infused by the parent company.

DGCA had rebuffed a previous revival plan submitted by Kingfisher in December 2012 on the grounds that, given its difficulties in paying back its lenders and the salaries of its staff, it might not guarantee a reliable service.

Kingfisher Airlines has been grounded since 1 October 2012 following unrest by employees and a subsequent disruption in its flight schedules. Its flying licence was suspended in December 2012, and the airline has two years to get it renewed.

Kingfisher Airlines reported net loss of Rs 755.17 crore in Q3 December 2012, higher than net loss of Rs 444.27 crore in Q3 December 2011.

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