Reliance Industries Ltd.

Mukesh Ambani-owned Reliance Industries (RIL) may be close to buying beleaguered Kingfisher Airlines, as mentioned in some media reports. Reliance might either make a financial investment in the airline or pick up equity through a preferential offer which could be followed up by an open offer to public shareholders.

However, if Reliance makes a financial investment in the airline, it might want the UB Group companies' shares pledged with itself as collateral, the chances of which are likely. It is also reported that, Reliance would get UB group’s 30.44% stake in Mangalore Chemicals and Fertilizers, as part of the deal.

Kingfisher Airlines, whose operations have been severely curtailed, has an accumulated loss and debt of nearly Rs 7,500 crore. It is now operating only a fourth of its services and has only a fifth of its fleet.

Adding to delight of the cash strapped airlines, after 16 years, the government is set to again allow foreign airlines to pick up stakes in Indian carriers later this week, which implies potential lifeline to struggling Kingfisher Airline, whose revival is said to depend on government policy.