Feb 15, 2013, 06.21 PM IST
A possible end to the two-year-long Kigfisher saga is visible after the SBI-led consortium of lenders decided to recall loan given to the troubled airlines. Most analysts were expecting the banks to take this drastic step and say the focus now will be on liquidation of assets.
Seventeen banks have an exposure of Rs 7,000 crore to Kingfisher Airlines, in which SBI's share of Rs 1400 crore is the largest. Some of the other banks with exposure to KFA are Bank of India (Rs 575 crore), IDBI (727 crore), Punjab National Bank (Rs 710 crore) and Bank of Baroda (Rs 530 crore).
SBI officials say banks have given enough time to Kingfisher to repay its dues but the Vijay Mallya-led company had shown little efforts in reviving the airline. The fact that Kingfisher could not provide concrete tmeline for its revival plan had upset all the lenders. Kingfisher had stopped flying since October 1, 2012 after a series of strike hit operations. The airline's flying licence has been suspended by the aviation regulator.
In a CNBC-TV18 interview, SBI's Deputy Managing Director Shyamal Acharya said he was expecting some amount of recovery in this quarter itself. He said the consortium has the shares of United Spirits as collateral which is valued at Rs 6,500 crore. This does not include the Kingfisher brand. It may be recalled that Kingfisher Airlines Chairman Vijay Mallya has given personal guarantee for the loans and Acharya is prepared to go to court to process personal guarantee collaterals.
Acharya said SBI has provided for 95 percent of total Kingfisher loan exposure. About 25 percent of SBI's total loan exposure is towards Kingfisher.
Mangalore Chem stock price
On December 09, 2013, Mangalore Chemicals and Fertilisers closed at Rs 53.00, down Rs 0.5, or 0.93 percent. The 52-week high of the share was Rs 73.00 and the 52-week low was Rs 27.30.
The company's trailing 12-month (TTM) EPS was at Rs 1.69 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 31.36. The latest book value of the company is Rs 49.21 per share. At current value, the price-to-book value of the company is 1.08.
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