Mumbai: Shares of Kingfisher Airlines on Wednesday surged more than three percent in early trade after media reports said private equity major Blackstone has made an offer to buy prime office and retail real estate blocks from UB Holdings.
According to the media reports, Blackstone has made an offer to UB Holdings to buy out prime office and retail real estate blocks in its flagship UB City property project near Bangalore.
Reacting to the news, shares of Kingfisher Airlines, surged 3.08 percent in early trade to touch a high of Rs 13.69 on the BSE.
On the National Stock Exchange as well, the stock followed similar movement and opened on a bullish note. It then gained 3.39 percent and touched a day's high of Rs 13.70 on the NSE.
Market experts said the uptrend in the counter was largely on the back of reports that UB Holdings might sell property and Vijay Mallya, who owns UB Holdings, might use the proceeds from the transaction to reduce his debt burden.
UB Holdings is the holding company of the UB Group.
According to the report, talks are still going on and the matter could be expected to be taken up by UB Holdings management shortly.
Kingfisher has accumulated losses of about Rs 9,000 crore as on September 30. It a heavy debt burden of about Rs 8,000 crore.
The airline company had posted a net loss of Rs 754 crore for July-September quarter, widening by 61 percent from Rs 469 crore in year-ago period.