Shares of ailing Kingfisher Airlines (KFA) gained 7.2% on Tuesday after news reports suggested that government is willing to support the company provided it settles employees' dues.
On the BSE, shares of KFA closed at Rs 14.48 against the previous day close of Rs 13.51. During the intra-day period, counter had hit a high of 8.4% before losing some of the gains.
The sharp rally came on a day when the Supreme Court rejected KFA's plea to grant interim protection for a month against any action by the income tax authorities for not depositing tax deduction (TDS) at source from its employees.
On Tuesday, Kingfisher's CEO Sanjay Aggarwal met officials from the Ministry of Civil Aviation in connection with the airline's revival plan.
A consortium of banks have lent Rs 7,500 crore to the company which have not been serviced for almost a year time now.
