Ahead of its meeting with bankers, Kingfisher Airlines saw its stock rise 4.9 per cent to Rs 9.60 on the NSE on Tuesday. Some 17 banks, which have an exposure of about Rs 7,000 crore in the debt-ridden airline, are expected to meet with the airline’s officials on Wednesday.

Analysts said that this, along with speculative news about Vijay Mallya selling part of his stake in the parent company UB group to raise funds for the cash-strapped airline, has bolstered investor sentiment. Besides, selling by LKP Finance in the counter has also abated, say brokers. United Spirits, the flagship company of Mallya group, touched a 52-week high at Rs 1,012.5 on the NSE.

“Something (news about the stake sale) is happening on the counter and that is reflecting in the price. Also, if the outcome of tomorrow’s meeting is positive, it will be good for both the banks and the airline company,” said Kartik Mehta, AVP-Research, Sushil Financial Services.

LKP Finance, which had an exposure of 16.48 per cent stake in the company, has almost exited. It now holds a mere 0.03 per cent.

The stock saw a sharp spike at around 11 am and continued to move in a range thereafter. During the day, it touched a high of Rs 10.10 and a low of Rs 9.05. The total traded volume of the stock on Tuesday was about 3.31 crore shares. On the BSE, it saw a volume of 80 lakh shares as opposed to its two-week average of 50 lakh shares.

> sneha.p@thehindu.co.in

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