Kingfisher shares plunge 20%, pare losses later

After a sharp plunge of 20 per cent in its share price earlier in the day, crisis-ridden Kingfisher Airlines on Wednesday bounced back smartly on the bourses and its stock managed to settle with a modest gain.

Analysts said that the bounce-back in the shares took place largely after the aviation regulator DGCA said there were no plans to take any punitive action for the moment against the carrier, which has been battling a number of issues including cancellation of flights.

Kingfisher shares closed for the day 0.75 per cent higher at Rs 26.80 on the BSE, after a sharp plunge of 20 per cent earlier during the day. The stock had touched a low of Rs 21.40 in early morning trade.

At the NSE, the stock ended at Rs 26.45, down 0.75 per cent from the last closing price.

Struggling to stay afloat after cancelling large number of flights, Kingfisher Airlines was today rapped by DGCA for not adhering to its flight schedules, but the aviation regulator made it clear there were no plans to take any punitive action against it for the moment.

"Let us not talk of punitive action at the moment. We are more interested to see the airline back on its feet. Our priority is not to punish ... because of the immediate difficulties the travelling public will have to face," DGCA chief E K Bharat Bhushan said.

He was speaking to reporters after an almost two-hour meeting with Kingfisher CEO Sanjay Aggarwal and Executive Vice President Hitesh Patel.