Kingfisher Airlines flies to new low as LKP Finance further trims stake

K. S. Badri Narayanan Updated - November 16, 2017 at 04:34 PM.

Promoters’ holding has hit a record low of 35.86 per cent in the debt-ridden airline, not because of their selling of shares but due to the conversion of debt instruments by financiers. 

Shares of Kingfisher Airlines fell to a new low on Tuesday as LKP Finance has been continuously selling the shares of the debt-ridden company.

On Monday, the stock had dipped below the face value of Rs 10 and closed at Rs 9.95. It is currently trading at 9.80 on the NSE, with already 20.91 lakh shares changing hands. Another four lakh shares changed hands on the BSE.

In a disclosure to the NSE, the company said that LKP Finance further offloaded its stake. From 16.48 per cent stake at the end of June 30, its holding has come down to around 10 per cent.

According to media reports, Kingfisher has not been able to pay salaries to its staff for months together. The company reported a loss of Rs 1,153 crore and a revenue of Rs 741.28 crore for the 2011-12 financial year.

Small individual shareholders currently own 9.56 per cent stake in Vijay Mallya-led group’s Kingfisher Airlines, while another 4.21 per cent holding is now with the high networth individuals.

However, promoters’ holding has hit a record low of 35.86 per cent in the debt-ridden airline, not because of their selling of shares but due to the conversion of debt instruments by financiers. Besides, the promoters have pledged over 90 per cent of their shares with various lenders.

Published on July 17, 2012 04:14