Kingfisher stock surges 18%; other UB Group shares follow

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Kingfisher stock surges 18%; other UB Group shares follow
Shares of Kingfisher Airlines surged more than 18% today on increasing hopes that the airline would be capitalised. The shares were up Rs 8.35 on the Bombay Stock Exchange.

Shares of United Breweries another Mallya group company also rallied sharply by more than 8% in trade.

"Kingfisher continues to believe it will get recapitalised and get on a path of sustained profitability. The airline is in discussions with several strategic and financial investors to bring fresh capital," the company said in a statement.

Debt-ridden Kingfisher Airlines reported net loss of Rs 651 crore for the quarter ended June 30, 2012, against Rs 264 crore for the corresponding period of the previous year.

Impact of high fuel cost, high interest rate, rupee depreciation and extraordinary expenses on account of return of aircraft to the lessors and costs associated with non-operating aircraft resulted in the loss, the airline said in a filing to the Bombay Stock Exchange (BSE) recently.

However, Kingfisher reduced operating losses by implementing a holding plan while it waits for recapitalization. Kingfisher Airlines halved its operating losses to Rs 204 crore for Rs 429 crore from corresponding period of previous year.

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Story first published: Monday, August 13, 2012, 11:22 [IST]
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