Kingfisher shares dip 3 pc

Kingfisher shares dip 3 pc

Defying an uptrend in the stock market, shares of Kingfisher Airlines today fell by over three per cent, as Finance Minister Pranab Mukherjee said that state-run lender SBI has no plans to provide any fresh loan to the cash-strapped air carrier.

Kingfisher shares closed for the day 3.05 per cent down at Rs 20.65 on the BSE. During the day, the stock had lost about 4 per cent and touched a a low of Rs 20.50.

On the NSE, the stock ended at Rs 20.70, down 2.59 per cent from the previous close.

The plunge in Kingfisher shares was in sharp contrast to an overall uptrend in the market, where the BSE barometer Sensex ended at 17,813.62, up 225.95 points.

The stocks of other air carriers, Jet Airways and SpiceJet also soared higher today with gains of 7.64 per cent and 6.74 per cent, respectively.

"SBI has informed that currently there is no such plan to provide additional loan to Kingfisher Airlines," Mukherjee informed the Rajya Sabha, while replying to a question as to whether SBI has initiated a proposal to bail out the airline by sanctioning fresh loan of Rs 1,500 crore.

Kingfisher Airlines, part of Vijay Mallya-led UB Group, has accumulated a huge debt and its operations have also been affected badly in recent months.

Speaking to reporters in the national capital, Mallya said: "We are facing a serious handicap as our accounts are frozen. We are not asking for bailout from the government but hope for help from banking sector to de-freeze our accounts."