The board of private carrier Kingfisher Airlines met on Tuesday and approved a resolution to raise up to Rs 5,000 crore in order to retire massive debt, which currently stands at Rs 6,000 crore. The company now seeks shareholders’ nod for fund raising and also to hike authorised share capital, which after the board’s approval has gone up to 4,250 crore from Rs 1,000 crore.
The company says that fund raising will be done via various instruments which could include preferential shares, GDRs, rights and even equity shares. It also says that it will immediately be raising up to USD 250 million by way of GDR and about Rs 500 crore will come in via domestic offering.
The process, company says will get completed within the next three to four months.
The aviation major will also convert Rs 650 crore of UB loans into preferential shares. It will also seek shareholders’ approval to increase the authorized share capital from the Rs 1,000 crore that they have to Rs 4,250 crore. This translates into hiking authorized equity capital from Rs 900 crore to Rs 1,650 crore and Rs 100 crore share authorized preferential share capital to Rs 2,600 crore
