Shares of Kingfisher Airlines on Monday
soared about 8 per cent on the bourses, ahead of the
company's board meeting, being held in the middle of
financial turbulence engulfing the carrier.
The stock jumped 7.88 per cent to Rs 21.20 on the Bombay Stock Exchange, while it was up 7.63 per cent up at Rs 21.15 on the National Stock Exchange in early morning trade.
It had hit an all-time low of Rs 17.55 on Friday amid concerns over its mounting debts and rising operating costs.
The airline's board is scheduled to meet on Monday to take stock of the company's financial position.
At 14.33 pm, the stock was trading 3.82 per cent up at Rs 20.40 on the BSE and 3.56 per cent up at Rs 20.35 on the NSE.
Kingfisher had suffered a loss of Rs 1,027 crore in 2010-11 and is estimated to have debt of over Rs 7,000 crore. Its shares are trading over 75 per cent below its one-year peak level of Rs 90.40, scaled on November 10, 2010.
State Bank of India, one of the main lenders to the carrier, has asked Kingfisher to
raise fresh equity to the tune of Rs 800-1,000 crore, if the banks were to consider a second restructuring of the existing debt or extending fresh advances.
Besides SBI, the lenders include ICICI Bank, IDBI Bank, Punjab National Bank, Bank of Baroda, Bank of India, UCO Bank, Oriental Bank of Commerce and State Bank of Mysore.
Together, these banks now hold a 23.4 per cent stake in the airline.Shares of the company today settled at Rs 25.70, down by5.86 per cent from its previous close at BSE.
At the end of the trade, Kingfisher Airlines settled at Rs21.35, up 8.65 per cent from the last close on BSE. During the day, the scripgained 10.17 per cent to Rs 21.65.
On the NSE, Kingfisher ended 9.67 per cent higher at Rs21.55. As many as 59.89 lakh shares of the company got traded onBSE, while over 2 crore equities exchanged hands on NSE.
The Kingfisher stock outperformed the broader market benchmarkSensex which ended 74.08 points lower.
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