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Kingfisher board okays Rs 2,000 cr rights issue

Kingfisher board okays Rs 2,000 cr rights issue

Vijay Mallya-promoted Kingfisher Airlines on Friday said it will raise Rs 2,000 crore through a rights issue, a move that will help the private carrier overcome financial problems.

Vijay Mallya -promoted Kingfisher Airlines on Friday said it will raise Rs 2,000 crore through a rights issue, a move that will help the private carrier overcome financial problems.

In a filing to the Bombay Stock Exchange, Kingfisher said its board of directors has approved the "issue of equity capital on rights basis (for) an amount not exceeding Rs 2,000 crore".

Further, the board also modified the terms and conditions of the Optionally Convertible Debentures (OCDs) that were issued by the company on January 3, 2011.

As per the new terms, the company said, an OCD holder will be allowed to convert the debentures into shares at a price to be determined by the Board.

The company had issued about Rs 700 crore of OCDs to certain entities in January.

As part of the debt restructuring undertaken by the airlines last year, a portion of its debt was converted into equity.

In the the quarter ended June 30, 2011, the net loss of the Kingfisher Airlines widened by 40.66 per cent to Rs 263.54 crore, mainly due to increased fuel expenses.

The company had reported a net loss of Rs 187.35 crore during the corresponding quarter of last fiscal.