LKP Merchant Financing on Thursday sold 78.51 lakh shares of debt-laden Kingfisher Airlines for Rs 9.57 crore in an open market transaction ten days after buying convertible debentures in the sinking airline.
According to bulk deal data available on the stock exchanges, LKP Merchant Financing offloaded 78,51,264 equities of Kingfisher Airlines for Rs 12.20 apiece. However, buyers of the shares could not be ascertained.
As of 23 June, 2012, LKP Finance held 133,296,791 or 16.48 percent stake in Kingfisher Airlines. This comes ten days after the non-banking finance company bought optionally convertible debentures of the company for Rs 160 crore in Kingfisher. It accounted for 8 percent of the company's equity once the debentures got converted.
The investment was made at a conversion price of Rs 21-23, a whopping 62 percent premium to the current market price at the time of the purchase last month.