Kingfisher Airlines down 5% on frozen accounts over non-payment

With its bank accounts frozen over non-payment of dues, shares of Kingfisher Airlines tumbled over 7 per cent in morning trade on Friday. The scrip recovered later, though it was still trading over 5 per cent down at 1 pm.

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Ten of the cash-strapped carrier's bank accounts were frozen on Thursday by central tax authorities for non-payment of service tax.

The scrip, which made a weak opening on the bourses, fell further by 7.21 per cent to a low of Rs 23.15 on the BSE in early trade. In a similar fashion, shares of the company witnessed an early low of Rs 23.10 on the NSE, down 7.22 per cent from their previous closing price.

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However, the stock recouped some of the losses in later trade and was trading at Rs 23.60 on BSE, down 5.41 per cent from its previous closing price, at 1 pm. On NSE, Kingfisher Airlines was trading 5.22 per cent lower at Rs 23.60 at the same time.

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The Service Tax Department has frozen 10 accounts of Kingfisher Airlines for defaulting on service tax payments over the past five days. Kingfisher owes about Rs 70 crore to the department.

The BSE benchmark Sensex was trading lower by 313.47 points at 16,174.77 at 1 pm.

- With PTI inputs