Aviation shares fly on FDI norms
Kingfisher Airlines soared 5.76 per cent to Rs 13.20, while Spicejet scrip gained 4 per cent to Rs 38.30 on the BSE.
Jet Airways rose by 2.44 per cent.
Last evening, unfazed by opposition even from its own allies, government went ahead implementing its decisions to allow FDI in multi-brand retail and liberalise foreign investment in aviation and broadcasting sectors.
"The Government of India has reviewed the position in this regard and decided to permit foreign airlines also to invest in capital of Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49 per cent of their paid up capital," a notification by the Department of Industrial Policy and Promotion (DIPP) said.
This would now pave the way for much-needed equity infusion into Indian carriers which are in dire need of funds for operations.
Investments in the aviation sector would be made under the government approval route and the parties need to comply with regulations of Securities and Exchange Board of India.
Earlier, no foreign airline was allowed to invest in Indian carriers directly or indirectly.
Stock markets cheered the move and the BSE 30-stock index, Sensex, was in the green at 18,663.27 -- up 314.02 or 1.71 per cent at 11.25 hrs.
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