Kingfisher drops 18%, recovers to limit loss to 3.6%

Shares of Vijay Mallya-led Kingfisher Airlines today slumped by as much as 18% on the bourses, before recovering most of the lost ground, amid concerns over limited clarity in the air carrier's fund raising plans to lower its debts and cut operational costs.

The stock settled at Rs 24.05, down 3.61%, at the BSE. Earlier in the day, it had plunged by as much as 18% to touch a low of Rs 20.50.

But, select buying at lower levels helped the Kingfisher shares pare most of their intra-day losses.

The marketmen said that the stock fell amid growing concerns about the cash-strapped carrier's ability to mop-up immediate capital to fund its operations and repay the debts.

A media report today quoted Kingfisher Chairman Vijay Mallya as saying that the airline was close to sealing a $370-million deal with an Indian private investor and a consortium of banks to save the airline.

However, Mallya himself later wrote on the social networking site Twitter that the report was "factually wrong". He, however, did not elaborate any further.

At the NSE, the stock ended at Rs 23.90 a piece, down 4.40% from the previous close. During the intra-day trading session, Kingfisher Airlines tanked by 17.8% to Rs 20.55 a share at the NSE.

Earlier this week, the airline reported that its losses doubled in the September quarter on account of high fuel costs and has cancelled several flights over the past few weeks.

The stock had hit an all-time low of Rs 17.55 on November 11 amid concerns over its mounting debt worries and surging fuel costs, interest payments and other expenses.