Kingfisher to raise Rs500 cr to clear debts

Kingfisher to raise Rs500 cr to clear debts
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First Published: Tue, Jul 21 2009. 10 02 PM IST

Cash crunch: UB Group chief financial officer Ravi Nedungadi. Hemant Mishra / Mint
Cash crunch: UB Group chief financial officer Ravi Nedungadi. Hemant Mishra / Mint
Updated: Tue, Jul 21 2009. 10 02 PM IST
Mumbai: Weighed down by debt, Kingfisher Airlines Ltd is looking to raise Rs 500 crore.
Cash crunch: UB Group chief financial officer Ravi Nedungadi. Hemant Mishra / Mint
“The company has grown largely by depending on debt and it’s time now to pay down some of it,” said Ravi Nedungadi, chief financial officer of Kingfisher’s parent UB Group.
Kingfisher is waiting for the government to allow foreign carriers to invest in India. If the process drags on, Kingfisher will look at either a rights issue or a follow-on public offer to raise the money.
“We think it’s still on the government’s agenda and we would like to give it some more time. But, if it’s not happening in reasonably short period then we will have to explore other options,” Nedungadi added.
A final decision on the fund-raising, which will improve Kingfisher Airline’s debt-equity ratio, will come in two-three months.
India’s airlines have been hurt by a decline in passenger traffic amid the economic downturn and volatile fuel prices.
cnbctv18@livemint.com
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First Published: Tue, Jul 21 2009. 10 02 PM IST
More Topics: CNBC-TV18 | Kingfisher | Debts | Funds | UB Group |