Don’t miss the latest developments in business and finance.

Kingfisher Airlines reverses 8-day 30.43% rally on profit booking

Image
Capital Market Mumbai
Last Updated : Apr 24 2013 | 1:41 PM IST

Meanwhile, the BSE Sensex was down 20.54 points, or 0.11%, to 19,208.72

On BSE, 51.11 lakh shares were traded in the counter with pending sell orders of 41.95 lakh shares at lowest level. The scrip has an average daily volume of 63.18 lakh shares in the past one quarter.

The stock hit a high of Rs 18.09 and low of Rs 16.41 so far during the day. The stock had hit a 52-week high of Rs 30.90 on 7 February 2012. The stock had hit a record low of Rs 7.01 on 13 August 2012.

More From This Section

The stock outperformed the market over the past one month till 13 December 2012, rising 16.69% compared with the Sensex's 3.28% rise. The scrip had also outperformed the market in past one quarter, gaining 72.36% as against Sensex's 6.70% rise.

The small-cap private air carrier has an equity capital of Rs 808.72 crore. Face value per share is Rs 10.

Shares of Kingfisher Airlines were on a roll recently, advancing 30.43% to Rs 17.27 on 13 December 2012 from Rs 13.24 on 3 December 2012.

After market hours on Wednesday, 12 December 2012, Kingfisher Airlines said its 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. The board appreciates that foreign investment (other than investment from NRI) in the company is regulatorily capped at 49%.

With a view to keeping the company's capital structure in readiness for transactions that may be identified in the future for the benefit of all stakeholders of the company, the board has, at its meeting held on Wednesday, 12 December 2012 decided and passed a resolution that with immediate effect and in accordance with the Foreign Exchange Management Act 1999 and the Companies Act, 1956, no FII, Qualified Foreign Investor or other non-strategic foreign investment (excluding investment by NRI) shall be permitted in the company beyond its current level of 3% or such other percentage that the board may decide from time to time under intimation to the stock exchanges. This restriction will be valid till such time as the board may decide from time to time which shall he intimated to the stock exchanges appropriately, Kingfisher Airlines said in a statement.

Appropriate steps are being undertaken to intimate the RBI about the board's decision and to seek consequent measures and also to seek any other approvals that may be considered necessary to give full effect to this decision, Kingfisher Airlines said.

Kingfisher Airlines after trading hours on Tuesday, 11 December 2012, said that the company is currently in discussion with various investors, including Etihad Airways, for equity investments in the company. However, no agreement has been reached either with Etihad or any other airline and the matters are merely at negotiation stages, Kingfisher Airlines said. The company issued this clarification after media reports suggested that Etihad Airways is set to buy stake in Kingfisher Airlines.

However, no agreement has been reached either with Etihad or any other airline and the matters are merely at negotiation stages, Kingfisher Airlines said. The company issued this clarification after media reports suggested that Etihad Airways is set to buy stake in Kingfisher Airlines.

Kingfisher Airlines reported a net loss of Rs 753.55 crore in Q2 September 2012, higher than net loss of Rs 468.67 crore in Q2 September 2011. Net sales fell 87.1% to Rs 200 crore in Q2 September 2012 over Q2 September 2011.

Powered by Capital Market - Live News

 

Also Read

First Published: Dec 14 2012 | 11:32 PM IST

Next Story