Shares in Malaysian Airline System fell over 9% today after the airline confirmed a 3.1bn ringgit ($1.02bn) rights issue. Earnings per share will most likely suffer an 80% dilution if the right issue is fully accepted and that has caused the sell off today. Meanwhile ironically Kingfisher Airlines shares, yes they do still exist, today were up nearly 5% to Rs 7.91 after the company sought regulatory approvals to re-launch operations earlier this week using UB funds.
This rise came even though the company owes an estimated Rs 13,582 crore to banks, its staff, airport operators and oil companies.
But the news story here is that SBICap Trustee Company, an SBI group entity, took the chance on the rise today to offload 85.17 lakh shares at Rs6.70 crore in open market transactions today at average prices of Rs7.87 to people who obviously feel lucky this Friday, a small victory for the investor.
Recently, lenders of Vijay Mallya-led group's Kingfisher Airlines have begun selling other group firm shares pledged with them to recover their loans amid huge accumulated losses and soaring debt levels of the airline that is grounded since October 2012.
The shares were pledged to SBICap as security for loans taken by Kingfisher Airlines.
Then not long after the rush for Kingfisher shares the Airports Authority of India (AAI) announced that it has declined to give a no-objection certificate (NOC) to Kingfisher Airlines (KFA). So expect those shares to fall on Monday.