The Mukesh Ambani-owned Reliance Industries may be close to buying the ailing Kingfisher Airlines, according to market sources.
The sources say that as part of the deal, Reliance would also get Mangalore Chemicals and Fertilizers Ltd, in which the UB group has a 30.44 per cent stake. When contacted, a Reliance official said they were unaware of any such development, while Kingfisher's spokesperson was not available for comment.
A chance meeting between Mr Mukesh Ambani, whose wife owns the Mumbai Indians IPL franchisee, and Mr Vijay Mallya, who owns the Royal Challengers Bangalore team, at an IPL match a few days back has led to intense speculation that a deal was imminent.
Kingfisher Airlines, whose operations have been severely curtailed, has an accumulated loss and debt of nearly Rs 7,500 crore. It is now operating only a fourth of its services and has only a fifth of its fleet.
According to exchanges, a series of block deals was put through in Kingfisher last week.
Kingfisher's Rs 10 shares were up nearly nine per cent on the NSE today at Rs 18.85.
(With inputs from Mumbai, New Delhi and Bangalore bureaus)