Kingfisher Airlines takes off on stake sale buzz

Shares of Kingfisher Airlines jumped on reports that the billionaire investor Wilbur Ross was likely to invest up to US$150mn in the debt-strapped Indian carrier. Kingfisher Airlines reported net loss of Rs1.87bn in Q1 FY11, lower than a net loss of Rs2.42bn in Q1 FY10. Net sales rose 24.9% to Rs16.40bn. Kingfisher Airlines is expected to finalise the restructuring of its Rs60bn debt soon. The development comes ahead of the carrier’s plans to raise US$250mn through a global depository receipts (GDR) issue. "The Reserve Bank of India (RBI) has allowed banks to restructure the debt. We are working with a consortium of banks to restructure the entire debt. It should be finalised by next month," Vijay Mallya, CMD, Kingfisher Airlines, told the shareholders at the AGM late last month.