Mumbai, Tuesday 31st August 2010 - Kingfisher Airlines, India’s only Five Star airline rated by Skytrax, today launched daily direct flights on the New Delhi—Ludhiana—New Delhi route. The launch of this new route marks the first time that Kingfisher Airlines is commencing operations from Ludhiana and it is currently the only private airline to offer services from this city.
The Board of Kingfisher Airlines Limited, at its meeting held today, approved, subject to shareholders approval, an increase in the authorised Equity Share Capital from Rs.900 crores to Rs.1,650 crores and an increase in the authorised Preference Share Capital from Rs.100 crores to Rs.2,600 crores.
The Company will immediately seek to raise up to US Dollars 250 million by way of GDR and a further Rs.500 crores through a domestic offering subject to necessary regulatory approvals. This funding is expected to be completed within the next 3-4 months.
At the meeting of the Board of Directors of United Breweries (Holdings) Limited, the Holding Company of Kingfisher Airlines, it was resolved that a sum of approximately Rs.650 crores provided as loans to Kingfisher Airlines be converted into Preference Share Capital.
The financials of Kingfisher Airlines are expected to be significantly strengthened by these initiatives.
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