Mumbai: Shares of Kingfisher Airlines today plunged 5 per cent after the SBI-led consortium of lenders turned down the company’s Rs 200 crore working loan request.
After opening weak, shares of the company further lost 4.95 per cent to touch the lower circuit limit of Rs 16.12 on the BSE. At the NSE, the scrip tumbled 4.72 per cent to Rs 16.15.
Turning down a request for Rs 200 crore working loan by Kingfisher, the SBI-led lenders consortium yesterday asked SBI Capitals to chalk out a fresh revival plan for the cash-strapped airline in the next 2-3 weeks.
According to lenders, Mallya did not offer any concrete revival plan as he could not commit on equity infusion by promoters.
This is the third time that SBI Caps has been asked to prepare a rejig exercise for the airline. In 2010, it had made a debt recast plan for the airline and in November that year, its Rs 6,500 crore worth loan was recast. Earlier this year, SBI Caps was asked to make another revival plan. Banks together have an exposure of nearly Rs 7,000 crore in the airline and the loans have all become non-performing assets since January. SBI has an exposure of Rs 1,500 crore to Kingfisher Airlines.
Meanwhile, leading bourse BSE yesterday halved its circuit limits on shares of Kingfisher Airlines and group firm United Breweries Holdings Ltd, capping their maximum movement in a day at 5 per cent and 10 per cent, respectively.
The proposed changes, announced by BSE last evening are effective from today, following a sharp rally in the share prices of the two companies in the past few days after the government allowed FDI in the civil aviation sector, and Mallya said his group is in talks with UK-based drinks major Diageo for stake sale in United Spirits.
Other group stocks were also trading lower after the recent rally. UB Holdings shares were trading 6.88 per cent lower, United Spirits 2.69 per cent down, United Breweries (1.58 per cent) and McDowell Holdings (3.49 per cent).
In the stock market, the BSE benchmark Sensex was however, trading at 18,857.78, up 278.28 points.