Mallya to opt for equity over debt for Kingfisher
Kingfisher Airlines Chairman Vijay Mallya has the necessary approval for raising Rs 7,500 crore through debt route, but he has said he would rather raise funds through equity in the next fiscal for his airline.india Updated: Jan 26, 2009 02:22 IST
Kingfisher Airlines Chairman Vijay Mallya has the necessary approval for raising Rs 7,500 crore through debt route, but he has said he would rather raise funds through equity in the next fiscal for his airline.
"No...On the contrary, I am talking of raising equity. I have not talked about additional borrowing," Mallya told PTI when asked if the company was planning to borrow from the market for expansion and other capital requirement.
However, raising equity in the airline, which has recently commenced international operations, could materialise only after the end of the year when the global economic situation is expected to improve.
"Raising equity is not the question of stimulating the market but a question of the global status (economic)," he said.
Mallya said getting shareholders' approval for raising the borrowing limit was just an enabling resolution after merging of Kingfisher Red (erstwhile Deccan) and of Kingfisher.
"Now the two (borrowing limits) have been clubbed. So we have to go for fresh approvals. When I went for approvals, I told them go for a higher amount, because everyday we should not go for approvals. Raising the limit (to Rs 7,500 crore) does not necessarily mean that I have borrowed it or I have to necessarily borrow it...I have taken an enabling approval," he said.