Online BusinessKingfisher may have Rs 500-cr equity issue
Kingfisher Airlines, owned by the UB Group, is planning to raise up to Rs 500 crore through issue of further share capital.
- Mallya's UB Q1 net up 57% Y-o-Y - United Breweries Q1 net up 57% YoY - United Breweries June qtr net profit up 57% at Rs 35 cr - Kingfisher has the most cases of drunk pilots - FIPB to mull United Breweries" proposal on July 24 - Kingfisher Airlines to raise up to Rs 500 cr through equity
Company officials indicate this may be through a number of options, including a follow-on public issue or a rights one. The airline has significant debt and losses.
It has been in discussion with private equity players for a year and has been trying to raise Rs 1,200 crore through equity ever since it merged with Deccan Aviation. Industry sources say the company debt is around Rs 6,000 crore on a base of Rs 270 crore, a leverage of 22 times.
Billionaire Vijay Mallya, the owner, has also been lobbying with the government to allow overseas airline players to have a stake in Indian civil airlines and according to company sources, “there have been some movements in that direction.”