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Lapsed operating license lands Kingfisher Airlines in red

01 Jan 2013 Evaluate

Kingfisher Airlines is currently trading at Rs. 14.34, down by 0.58 points or 3.89% from its previous closing of Rs. 14.92 on the BSE.

The scrip opened at Rs. 14.18 and has touched a high and low of Rs. 15.27 and Rs. 14.18 respectively. So far 1767633 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 30.90 on 07-Feb-2012 and a 52 week low of Rs. 7.01 on 13-Aug-2012.

Last one week high and low of the scrip stood at Rs. 16.55 and Rs. 14.75 respectively. The current market cap of the company is Rs. 1175.88 crore.

The promoters holding in the company stood at 35.83% while Institutions and Non-Institutions held 15.61% and 48.56% respectively.

Debt-laden Kingfisher Airlines’ operating license lapsed on 31st December 2012 and it has to submit a concrete action plan to get its flying license renewed. The Directorate General of Civil Aviation (DGCA) suspended airlines operating license on October 20 and asked to submit a concrete and viable revival plan ensuring safe, reliable, efficient and sustainable operations. As per the DGCA regulations Kingfisher can renew its license within two years.

The entity has submitted a revival plan recently, which includes an over Rs 650-crore capital infusion from the parent UB Group over the next 12 months but DGCA replied to the airline seeking more details of the revival plan including an assurance that the funds will be forthcoming from the UB Group. In addition, Kingfisher was asked to consult with various stakeholders who have requested the DGCA not to allow the airline to restart operations till their dues are cleared.

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