Kingfisher converts 7 crore debentures into equity shares

Our Bureau Updated - March 12, 2018 at 12:55 PM.

Struggling with a large debt, Kingfisher Airlines said it has allotted equity shares against optionally convertible debentures (OCDs). In a filing to the Bombay Stock Exchange, the cash-strapped carrier said it has issued around 8 crore equity shares at a price of Rs 25.01 per share to three entities — LKP Securities Ltd, Redect Consultancy, and Star Investments — in lieu of conversion of debentures. Kingfisher had allotted over 7 crore OCDs, having an interest rate of 8 per cent, to the three entities in January last year.

“Post allotment, the paid-up equity share capital of the company stands increased to Rs 577 crore from Rs 497 crore,” the company said in the filing.

The conversion of OCDs to equity shares will help Kingfisher reduce its debt burden as it will save on the 8 per cent interest cost.

According to the terms of the OCD issue, the holder has the option to convert the instrument into equity shares within 18 months from the date of issue. The 18 months end on July 2, 2012.

Shares of Kingfisher Airlines closed at Rs 26.80, up 0.75 per cent on the BSE on Tuesday. During the day, it had plunged almost 20 per cent to touch an intra-day low of Rs 21.40.

>niveditag@thehindu.co.in

Published on February 21, 2012 14:22