Falling for sixth straight day, shares of Kingfisher Airlines plunged by 5 per cent today, taking the total losses over the last six sessions to 26 per cent.
The scrip tanked 4.91 per cent to hit the lower circuit limit of Rs 12.60 on the BSE. At NSE, the stock fell by 4.91 per cent to Rs 12.60.
Civil Aviation Minister Ajit Singh had yesterday said, the troubled airline company would have to submit a “concrete” plan for running the carrier to aviation regulator DGCA and satisfy it on all aspects such as safety and payment of salaries, before it is allowed to resume flights.
Directorate General of Civil Aviation (DGCA) had issued a show—cause notice to Vijay Mallya—owned carrier on October 5 asking why its flying license should not be suspended or cancelled as it had grounded its entire fleet and failed to offer safe, efficient and reliable service. It has given the airline 15 days to reply.
Kingfisher has been saddled with a huge loss of Rs 8,000 crore and a debt burden of over Rs 7,000 crore that has not been serviced since January.
Selling pressure was also seen in other UB group stocks.
United Breweries Holdings plummeted 7.65 per cent, United Breweries (1.02 per cent), United Spirits Ltd (6.28 per cent), McDowell Holdings (4.94 per cent) and UB Engineering (4.53 per cent).
In the broader market, the BSE benchmark index Sensex ended at 18,708.98, down 229.48 points.