The price of Kingfisher Airlines shares hit an all-time low on Friday at Rs 17.6 before marginally improving to close at Rs 19.7, a 9.5% decline from its previous closing price.
Analysts felt the stock could touch Rs 16 mark in the near term. “The situation is critical as it is a peak period for travel industry and Kingfisher is cancelling 30 to 40% flights,” said Kapil Kaul, from the Centre for Asia Pacific Aviation in New Delhi.
The airline is reportedly in talks with financial institutes to restructure its loans.
Shares of India’s top two lenders, State Bank of India and ICICI Bank, which hold
more than 5% stake in Kingfisher Arlines, also fell over 4% on Friday on worries that their loans to the carrier could turn sour.
ICICI Bank shares fell 4.6% to R822.5, while SBI lost 3.5% to R1,797.7 on the Bombay Stock Exchange on Friday.