Kingfisher Airlines jumps 20% on investment talks
Shares of Kingfisher Airlines, struggling with losses and cash shortage, jumped the most in about three years, after the airline said it was in talks with several investors to raise funds.
The Vijay Mallya-led Kingfisher Airlines scrip soared 20 per cent on Monday, the most since May 2009, to close at Rs 8.85 on the Bombay Stock Exchange (BSE). Mallya's United Breweries surged 9.54 per cent to Rs 569.20 after the company's quarterly profit rose 39 per cent, while United Spirits rose 11.87 per cent to Rs 922.35 and United Breweries Holdings rose 10.12 per cent to Rs 94.15.
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Kingfisher has asked banks for more loans, as its market share plummeted and it struggled to pay salaries and interest on debt accumulated for leasing aircraft. It had stopped two-thirds of its flights, grounded aircraft and struggled to pay salaries, following 19 quarters of losses. On August 11, the company announced a net loss of Rs 650 crore for the quarter ended June, as passengers shunned the carrier because of service disruptions. Net loss in the year-ago period stood at Rs 260 crore, while that in the quarter ended March was Rs 1,150 crore.