Kingfisher imposes FII cap to make room for strategic investor
“Appropriate steps are being undertaken to intimate the RBI about the same and seek consequent measures and also to seek any other approvals that may be considered to give full effect to this decision (capping FII limit at 3%),” Kingfisher Airlines informed stock exchanges on Thursday.
The company board decided to set the FII cap on December 12. The airline told stock exchanges that the decision was taken as the airline was in talks with several “financial and strategic” investors.
“With a view to keeping the company's capital structure in readiness for transactions that may be identified in the future for the benefit of all stakeholders, the board has decided and passed a resolution with immediate effect that allows now FII, qualified foreign investor or non-strategic foreign investment beyond its current level of 3%,” the airline wrote to the Bombay Stock Exchange.
Kingfisher said the restriction will be applied till such time the board decides to withdraw it. As of September 30, FIIs hold 2.46% stake in Kingfisher Airlines.
In September, the government allowed FDI
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