Promoter holding in Kingfisher drops below 50%

New Delhi: The promoter holding in the troubled air carrier Kingfisher Airlines has dropped to 47.28 percent - slipping below the psychological level of 50 percent for the first time in about four years.

The promoter holding in the airline stood at 47.28 percent as on 11 April, 2012, down from 50.20 percent at the end of last quarter ended 31 March, 2012, as per its latest shareholding data filed with the stock exchanges today.

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However, the promoters’ holding has not declined because of any sale of shares by them in the airline, which is part of Vijay Mallya-led UB Group.

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While the promoters continue to hold the same number of shares (about 29 crore), their holding has come down in percentage terms due to increase in Kingfisher’s total number of shares, which in turn, has happened because of conversion of certain convertible bonds into equity.

As a result, the percentage holding of some non-promoter investors has also come down, which were not issued fresh shares in lieu of convertible bonds held by them.

The investors whose percentage holding has come down since 31 March, 2012 include SBI (from 4.89 percent to 4.61 percent) ICICI Bank (from 2.9 percent to 2.73 percent), IDBI Bank (from 3.02 percent to 2.84 percent), Bank of Baroda (from 1.51 percent to 1.42 percent) and Uco Bank (from 1.21 percent to 1.14 percent).

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After accounting for the convertible securities held by it, SBI’s stake in the airline stands at 5.01 percent, while another lender ICICI Bank has nearly halved its stake since the beginning of 2012.

These banks were issued shares earlier in the airline, after a debt recast exercise that involved conversion of a part of debt into equity for its various lenders.

Burdened under a huge debt pile, Kingfisher has been flying through turbulent times for many months now and has seen a significant erosion of more than two-third in its market value in the past one year.

Its share price dipped nearly two percent today to close at Rs 15.15, after hitting an all-time low of Rs 13 two days before on 25 April.

The enties whose stake has risen since 31 March include Star Investments (from 2.22 percent to 4.94 percent).

The company had disclosed earlier on 24 April a part-conversion of certain convertible debentures into equity shares, pursuant to which its total equity base had risen from 61.32 crore to about 67.54 crore.

Accordingly, the promoters’ total holding of about 29 crore shares now account for about 47.28 percent stake, down from 50.2 percent as on 31 March, 2012.

The promoters’ overall stake in the airline last stood below 50 percent level about four years ago on 30 June, 2008.

PTI