NEW DELHI: Crisis-ridden Kingfisher Airlines’s share price is now lower than its face value. On Monday, the Bombay Stock Exchange (BSE) saw the stock closing at Rs 9.9 after touching an intraday life low of Rs 9.8. The stock has crashed from Rs 40.6 to these new lows within a year, as the airline now struggles to survive.
The airline owes Rs 7,500 crore to banks (mostly public sector ones), its total lossescum-liabilities are close to Rs 12,000 crore and it is struggling to survive. Last April, lenders including State Bank of India and ICICI Bank had converted debt amounting to Rs 1,400 crore into equity at a 61.6% premium to the prevailing market price. Stock exchange filings showed that on March 31, 2011, there was preferential allotment to SBI and ICICI Bank due to conversion of compulsorily convertible preference shares into equity shares at a price of Rs 64.5 each. On that day,Kingfisher Airlines had closed at Rs 39.9 on the BSE.
Kingfisher has not been able to pay salaries to staff for the past five months and some of its pilots went on a flash strike on Saturday. The airline promised to pay them by Monday to get them back to work.