Kingfisher shares at new record low | india | Hindustan Times
Today in New Delhi, India
Jun 24, 2017-Saturday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Kingfisher shares at new record low

Shares of troubled Kingfisher Airlines plunged to a record low on Tuesday on fears that a government move to allow foreign airlines to pick up stakes in domestic carriers may be delayed.

india Updated: Apr 24, 2012 21:32 IST

Shares of troubled Kingfisher Airlines plunged to a record low on Tuesday on fears that a government move to allow foreign airlines to pick up stakes in domestic carriers may be delayed.

Kingfisher shares tumbled as much as 17.2% to a low of R14, while budget airline SpiceJet lost 2.4% to R29.2. Rival Jet Airways also was down 0.7% to R342.8.

Kingfisher had climbed from a previous low of 15.0 on April 2, on hopes the aviation proposal would soon be cleared.

The cabinet was expected to decide on allowing foreign direct investment (FDI) in aviation, but media reports say the government is now more likely to discuss the matter first with all its allies before giving a nod.

The government last year suffered a humiliating climbdown when it was forced to backtrack on a proposal allowing foreign supermarket chains into India, amid parliamentary opposition and protests from shopkeepers and unions.

FDI in aviation is seen as a lifeline to companies such as cash-squeezed Kingfisher Airlines, controlled by billionaire liquor baron Vijay Mallya, which is in desperate need of funds to implement a turnaround plan.