Mallya & Co hold discussions with SBI officials

In continuation of efforts to raise funds for beleaguered Kingfisher Airlines, its promoter Vijay Mallya and top officials today held discussions with the State Bank of India officials.

The meeting, in which Mallya, UB Group Chief Financial Officer Ravi Nedungadi and Kingfisher CEO Sanjay Agarwal, were present, is understood to have taken place at the SBI headquarters here. The SBI is leading the 13 bank consortium, which funding the cash strapped airlines. However, details of the meeting were immediately not available. Earlier this week, the airline reported that its losses doubled in the September quarter on account of high fuel costs and cancelled several flights over the past few weeks. After announcing the results, Mallya had said that the airline has sought help from banks to raise short-term funds to the tune of Rs 700-800 crore as working capital, interest concession, and also ruled out its closure. He also said that the company plans to raise Rs 2,000 crore through rights issue and is seeking government approval for direct import of jet fuel to reduce fuel costs. Meanwhile, shares of Kingfisher Airlines today slumped by as much as 18% on the bourses, before recovering most of the lost ground, amid concerns over limited clarity in the air carrier's fund raising plans to lower its debts and cut operational costs. The stocks settled at Rs 24.05, down 3.61%, at the BSE. Earlier in the day, it had plunged by as much as 18% to touch a low of Rs 20.50. At the NSE, the stocks ended at Rs 23.90 per share, down 4.40% from the previous close. During the intra-day trading session, Kingfisher Airlines tanked by 17.8% to Rs 20.55 a share at the NSE.