Vijay Mallya-promoted Kingfisher Airlines Ltd plans to raise additional fund of $100 million through various instruments including Global Depository Receipts (GDRs), the airline informed the exchanges. The decision is now subject to the approval of the shareholders.
“This is over and above the decision taken at the last board meeting for induction of capital for an amount not exceeding Rs 500 crore,” the company said.
The board of directors further seeks approval of the shareholders for increase in authorised share capital of the company from Rs 500 crore to Rs 1,000 crore.
Kingfisher Airlines raises capital from time to time to fund its huge working capital requirements. In June 2009, it got funding of Rs 2,000 crore from State Bank of India and a consortium of other banks to meet working capital requirements. Reports suggest that the company has also been targeting an equity infusion of around Rs 2,000 crore through strategic and financial investors