Kingfisher Airlines to Raise Rs. 2,000 cr Through Rights Issue
Saturday, 27 August 2011, 00:59 IST
By PTI
By PTI
Mumbai: Vijay Mallya-promoted Kingfisher Airlines today said it will raise Rs. 2,000 crore through a rights issue, a move that will help the private carrier overcome financial problems.
In a filing to the Bombay Stock Exchange, Kingfisher said its board of directors has approved the "issue of equity capital on rights basis (for) an amount not exceeding Rs. 2,000 crore".
Further, the board also modified the terms and conditions of the Optionally Convertible Debentures (OCDs) that were issued by the company on January 3, 2011.
As per the new terms, the company said, an OCD holder will be allowed to convert the debentures into shares at a price to be determined by the Board.
The company had issued about Rs. 700 crore of OCDs to certain entities in January.
As part of the debt restructuring undertaken by the airlines last year, a portion of its debt was converted into equity.
In the the quarter ended June 30, 2011, the net loss of the Kingfisher Airlines widened by 40.66 percent to Rs. 263.54 crore, mainly due to increased fuel expenses.
The company had reported a net loss of Rs. 187.35 crore during the corresponding quarter of last fiscal.
The shares of the company was trading on the BSE at Rs. 24.15 per share, down 3.78 percent.
In a filing to the Bombay Stock Exchange, Kingfisher said its board of directors has approved the "issue of equity capital on rights basis (for) an amount not exceeding Rs. 2,000 crore".
Further, the board also modified the terms and conditions of the Optionally Convertible Debentures (OCDs) that were issued by the company on January 3, 2011.
As per the new terms, the company said, an OCD holder will be allowed to convert the debentures into shares at a price to be determined by the Board.
The company had issued about Rs. 700 crore of OCDs to certain entities in January.
As part of the debt restructuring undertaken by the airlines last year, a portion of its debt was converted into equity.
In the the quarter ended June 30, 2011, the net loss of the Kingfisher Airlines widened by 40.66 percent to Rs. 263.54 crore, mainly due to increased fuel expenses.
The company had reported a net loss of Rs. 187.35 crore during the corresponding quarter of last fiscal.
The shares of the company was trading on the BSE at Rs. 24.15 per share, down 3.78 percent.
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