Kingfisher shares soar 8 pc ahead of board meet

Kingfisher shares soar 8 pc ahead of board meet

The stock jumped 7.88 per cent to Rs 21.20 on the BSE, while it was up 7.63 per cent up at Rs 21.15 at the NSE in early morning trade.

It had hit an all-time low of Rs 17.55 on Friday amid concerns over its mounting debts and rising operating costs.

The airline's board was scheduled to meet today to take stock of the company's financial position.

At 1315 hours, the stock was trading 5.34 per cent up at Rs 20.70 at the BSE.

Kingfisher had suffered a loss of Rs 1,027 crore in 2010-11 and is estimated to have debt of over Rs 7,000 crore.

Its shares are trading over 75 per cent below its one-year peak level of Rs 90.40, scaled on November 10, 2010.

State Bank of India, one of the main lenders to the carrier, has said that Kingfisher would have to raise fresh equity to the tune of Rs 800-1,000 crore, if the banks were to consider a second restructuring of the existing debt or extending fresh advances.

Besides SBI, the lenders include ICICI Bank, IDBI Bank, Punjab National Bank, Bank of Baroda, Bank of India, UCO Bank, Oriental Bank of Commerce and State Bank of Mysore.

Together, these banks now hold a 23.4 per cent stake in the airline. The airline has cancelled several flights over the past few weeks