Aviation stocks rally as FDI notified

Stocks

oi-Sneha

By Sneha B K

Updated: Friday, September 21, 2012, 14:02 [IST]

The shares of the aviation sector gained on Friday as government decided to permit foreign airlines also to invest in the capital of Indian companies.

Kingfisher Airlines surged 4.97% to Rs 13.13. It touched a intra-day high of Rs 13.30, while Spicejet stocks jumped 3% to Rs 37.85. It touched intra-day high of Rs 38.30. Jet Airways was up by 1.29%. It touched intra-day high of Rs 368 on BSE.

Permission for operating scheduled and nonscheduled air transport services, up to the limit of 49% of their paid-up capital.

However, it would be made under the Government approval route and the 49% limit will subsume FDI and FII investment.

The investments so made would need to comply with the relevant regulations of SEBI, such as the Issue of Capital and Disclosure Requirements (ICDR) Regulations/ Substantial Acquisition of Shares and Takeovers (SAST) Regulations, as well as other applicable rules and regulations.

Foreign airlines are also, henceforth, allowed to invest, in the capital of Indian companies, operating scheduled and non-scheduled air transport services, up to the limit of 49% of their paid-up capital. Such investment would be subject to conditions.

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