Kingfisher Airlines' shares surged as much as 5 per cent on the bourses on Wednesday to hit the upper circuit limit in afternoon trade, after the cash-strapped carrier started paying salaries to some of its employees.
According to sources, Vijay Mallya's ailing carrier started disbursing salaries to some of its employees apart from approaching the aviation regulator seeking licence renewal.
Shares of the company opened on a bullish note and then gained further ground and touched an intra-day high of Rs 11.05 apiece on the Bombay Stock Exchange, higher by 5 per cent from their previous closing price.
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Similar movement was witnessed on the National Stock Exchange, where the stock gained 4.76 per cent and hit the upper circuit limit for the day at Rs 11.
Kingfisher Airlines shares were locked at upper circuit limit of Rs 10.53 on Tuesday after its group holding firm United Breweries (Holdings) hiked its loan limit for the ailing carrier to Rs 750 crore from Rs 300 crore.
Sources said airline's CEO Sanjay Agarwal is in New Delhi to meet the Directorate General of Civil Aviation (DGCA) to make a fresh request to resume operations.
However, both the developments could not be officially confirmed.