Kingfisher Airlines up 5% on talks with investors, Etihad

Shares of Kingfisher Airlines rose 5% to Rs 16.45 on news that the company is in discussions with several investors for equity partnership, including Gulf-based Etihad Airways .

The company has however denied any deal with any of them, even as it lost five more aircraft due to non- payment of lease rentals and tax dues. "We would like to clarify that the company is in discussions with various investors, including Etihad Airways, for equity investments," Kingfisher said in a filing to BSE.

"However, no agreement has been reached either with Etihad or any other airline and the matters are merely at negotiation stages," the statement said. The company has been attempting to raise the much-needed capital over the last two years, pursuant to shareholders' resolutions approving the same and duly reported to the stock exchanges, it said, adding that it has been widely reported in the media.

A section of the media yesterday said the Vijay Mallya-owned carrier is all set to sign a deal with Etihad to sell 48 per cent stake for Rs 3,000 crore. Reacting to the news, the market lapped up Kingfisher stock on Tuesday that closed on the BSE at Rs 15.67, up 5 per cent - the maximum it can move in a day as per the exchange norms. Kingfisher has a market capitalisation of Rs 1,267.23 crore as of today.