A group of lenders headed by State Bank of India is getting a seat on Kingfisher. They’ll now be able to appoint one member of their choice on the airline’s board. Kingfisher has a vacant board seat ever since Air Deccan founder Captain Gopinath quit. The consortium of 13 banks currently holds 23.37% of Kingfisher. They got that stake after loaning the carrier Rs750 crore.
But Kingfisher’s troubles aren’t over. The airline has never made a profit, it has a debt of Rs7,000 crore and has delayed raising money through a GDR because its stock is losing altitude.
Also in corporate, Hero Honda is all set to get a new look. We’ve learnt the company’s board has decided to unveil its revamped branding on 14 July. That’s also the time it will wind up remaining monetary transactions with old joint venture partner Honda Motor. Changing the brand will be about more than marketing. A new identity will also allow Hero to sell overseas and buy components from new vendors.
In other news, the 2G scandal trial has begun. On Wednesday a special CBI court in Delhi started hearings in the case. Those present included former telecom minister A. Raja. Also at the trail were senior executives from Anil Ambani’s Reliance Group and DB Realty. Five of the executives filed for bail. The court will hear the case again on Friday.
The CBI filed charges against the executives on 2 April. It accused them of colluding with Raja in allocating 2G spectrum. The CBI’s charges include corruption, criminal conspiracy, fraud, and forgery.
Indian markets turned around on Wednesday, breaking a five-day losing streak. The Sensex soared 434 points to 19,697. And the Nifty jumped 126 to 5,912.