Kingfisher stock up 14% as employees withdraw agitation
Mumbai: Shares of Kingfisher Airlines rebounded from record lows and surged over 14 percent in the afternoon trade as the standoff between the management and employees, agitating over delayed salaries, ended Tuesday.
The protesters accepted the assurance given by the beleaguered carrier's promoter Vijay Mallya and decided to withdraw the agitation.
Following this, the stock saw a spike of 14.56 percent to Rs 17.30 on the BSE.
At the NSE also, the scrip surged 14.61 percent to a high of Rs 17.25.
In the previous trade, Kingfisher had slumped about 9 percent to Rs 14.95.
"Many factors are driving the stock in today's trade. The company's employees withdrawing their threatened agitation is very positive for the company.
"Also, there was buzz that foreign airlines may be soon allowed to pick up stake in domestic airlines," Ashika Stock Brokers Research Head Paras Bothra said.
Mallya, who had a meeting with the employees, including pilots and engineers late last night, had assured them that their dues would be paid in a staggered manner by April 10.
The airline, which has a debt of USD 1.3 billion, is under pressure from its lenders to inject fresh equity.
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