Kingfisher Air to sell Mumbai corporate office

Bangalore: The cash-strapped Kingfisher Airlines has decided to put its corporate office in Mumbai on the block while it plans to raise about Rs 2,000 crore through a rights issue.
“We have moved into a new building in Mumbai. The existing office is now redundant to our needs, so we will obviously look to sell it. Any initiative that we can take to reduce our debt is going to be pursued,” Mr Vijay Mallya, Chairman of the airline, told newspersons on Wednesday after emerging out of the company's annual general meeting.
According to real estate analysts, the commercial building, located on the Western Express Highway, could fetch about Rs 20,000 per sq ft.
The company also plans to come out with Rs 2,000-crore rights issue, which was unanimously approved by shareholders, informed Mr Mallya. The rights issue could be launched in addition to a $250-300 million GDR issue, which has already been approved by the company shareholders.
“GDR could not be launched due to various external environmental factors such as the high crude oil price regime. But there are always opportunities that show up and we are examining all options available to us including the rights issue,” he said.
28/09/11 Business Line

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Categories: Kingfisher Sep 2011