Kingfisher Airlines to raise Rs 5,000 crore

Kingfisher Airlines would raise $1 billion (close to Rs 5,000 crore) through issuance of equity shares or preference shares or through global depository receipts (GDR). Of the designated amount, the company will immediately seek to raise up to $250 million (Rs 1,100 crore) through GDR issue and another Rs 500 crore through domestic offering. The funding is expected to be completed within the next three to four months.

Kingfisher Airlines would also seek shareholders’ approval to increase its equity share capital to Rs 1,650 crore from Rs 900 crore and authorised preference share capital to Rs 2,600 crore from Rs 100 crore. It may convert Rs 650 crore provided as loans into preference share capital.