Mallya to opt for equity over debt for Kingfisher

New Delhi: Kingfisher Airlines Chairman Vijay Mallya has the necessary approval for raising Rs 7,500 crore through debt route, but he has said he would rather raise funds through equity in the next fiscal for his airline.
"No...on the contrary, I am talking of raising equity. I have not talked about additional borrowing," Mallya said when asked if the company was planning to borrow from the market for expansion and other capital requirement.
However, raising equity in the airline, which has recently commenced international operations, could materialise only after the end of the year when the global economic situation is expected to improve.
"Raising equity is not the question of stimulating the market but a question of the global status (economic)," he said.
Mallya said getting shareholders' approval for raising the borrowing limit was just an enabling resolution after merging of Kingfisher Red (erstwhile Deccan) and of Kingfisher.
25/01/09 PTI/Economic Times

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Categories: Kingfisher Jan 2009