Kingfisher Airlines to raise Rs 5,000 cr

Bangalore: Kingfisher Airlines, owned by Vijay Mallya’s liquor-to-airlines UB Group, on Tuesday said it would raise $1 billion (close to Rs 5,000 crore) through various instruments.
The company’s board approved the airline’s plan to raise the amount through issuance of equity shares or preference shares or through global depository receipts (GDR).
Of the designated amount, the company will immediately seek to raise up to $250 million (Rs 1,100 crore) through GDR issue and another Rs 500 crore through domestic offering. “The funding is expected to be completed within the next three to four months,” a company statement said.
Kingfisher Airlines had earlier said it might raise around Rs 450 crore through GDR and might look at a rights issue for the domestic float.
Vijay MallyaKingfisher Airlines also said it would seek shareholders’ approval to increase its equity share capital to Rs 1,650 crore from Rs 900 crore and authorised preference share capital to Rs 2,600 crore from Rs 100 crore.
01/09/10 Business Standard

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Categories: Kingfisher Sep 2010