After 16 years, the government is set to again allow foreign airlines to pick up stakes in Indian carriers later this week, thereby throwing a potential lifeline to struggling aviation companies. The commerce and industry ministry on Tuesday circulated a Cabinet note seeking comments from other ministries to permit 49% FDI in Aviation. It is hoping the proposal will go through in its present form as the finance and civil aviation ministries had agreed to it earlier.
Foreign carriers such as British Airways, Singapore Airlines and Emirates are banned from investing in the aviation sector, though financial and other non-airline investors can invest up to 49% in Indian airlines.
However, an immediate beneficiary could be financially stressed Kingfisher Airlines, whose owner Vijay Mallya recently said the revival of his airline depends on government policy.
Kingfisher Airlines is currently trading at Rs. 19.75, up by 1.10 points or 5.90% from its previous closing of Rs. 18.65 on the BSE. The scrip opened at Rs. 19.20 and has touched a high and low of Rs. 20.30 and Rs. 19.20 respectively. So far 6831482 shares were traded on the counter.
Spicejet is currently trading at Rs 28.50, up by 1.00 points or 3.64% from its previous closing of Rs 27.50 on the BSE. The scrip opened at Rs 28.45 and has touched a high and low of Rs 29.15 and Rs 27.80 respectively. So far 3996018 shares were traded on the counter.
Jet Airways (India) is currently trading at Rs 357.15, up by 16.55 points or 4.86% from its previous closing of Rs 340.60 on the BSE. The scrip opened at Rs 348.30 and has touched a high and low of Rs 362.20 and Rs 346.00 respectively. So far 228643 shares were traded on the counter.
| Company Name | CMP |
|---|---|
| Interglobe Aviation | 4522.20 |
| SpiceJet | 13.99 |
| Raymond | 514.40 |
| Global Vectra Helico | 185.90 |
| Taneja Aerospace | 344.30 |
| View more.. | |
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