Kingfisher Airlines plans fund raising, shares up
Indian airlines company, Kingfisher Airlines has said that it is planning to go for fund raising. Post the declaration, shares of the company shot up on the bourses.
During the day, shares of the company gained 3 per cent as more and more investors got interested in the plans of the company.
This also led to the recovering of the lost value by the company share. The scrips went up by 3.45 per cent and ended at rupees 61.40 on the BSE. Following the similar trend on NSE, ended at rupees at 61.0.
Kingfisher has announced that it is going to immediately raise $250 million through Global Depository Receipts (GDRs) and the proceeds will then be used for reducing its debt burden. Another rupees 500 crore is to be raised through domestic sources. The regulatory approval for the two exercises is still awaited.
But as of now it seems that the whole process will be over in another 3-4 months time. At present, the total debt burden on the airlines is rupees is 30,000 crore and has been facing tough situation for quite sometime now.
New Zealand News
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