Kingfisher promoter holding dips to record low of 35.86%

The promoter holding in Vijay Mallya-led UB Group's Kingfisher Airlines has dipped to a low of 35.86 per cent -- the lowest since the carrier became a public listed company after acquiring Deccan Airways.

After excluding the shares they have pledged, the promoters hold a meagre 3.55 per cent in the crisis-ridden airline.

As per the latest shareholding disclosure by the company, the promoters hold 35.86 per cent, down from about 43 per cent in April and over 50 per cent at the close of the last fiscal ended March 31, 2012.

However, the latest decline in their stake is not because of sale of shares but because of increase in total number of the company's shares, following the conversion into equity of warrants issued to an entity, LKP Finance Ltd, which now holds over 16 per cent stake.

While the promoters continue to hold the same number of shares (about 29 crore or Rs 290 million), the total number of the company's shares has increased to about 81 crore (810 million), from about 67 crore (670 million) prior to the latest shares allotment to LKP Finance and from 58 crore (580 million) as on March 31, 2012.

Meanwhile, the holding of individual shareholders have increased significantly since the beginning of the current fiscal.

Small retail investors now hold 12.6 per cent, while HNIs hold 8.55 per cent stake -- up from 9.56 per cent and 4.21

per cent respectively at the end of last fiscal.

The current promoter holding is lowest since Kingfisher became a public-listed company after acquisition of Captain Gopinath founded Deccan Airways in 2007-08.

The promoters have pledged more than 90 per cent of their own holding in the airline.

Burdened by a huge debt pile, Kingfisher has been flying through turbulent times for many months now and its market value has seen a significant erosion of more than two-third in the past one year.

Its shares hit an all-time low of Rs 10.05 early last month and is currently trading near Rs 12 level.

About a year ago, the stock was trading over Rs 40 level.

The promoters currently hold shares worth about Rs 350 crore (Rs 3.5 billion) in Kingfisher, but the value of their non-pledged shares is worth just about Rs 30 crore (Rs 300 million).

The total market value of Kingfisher currently stands at about Rs 960 crore (Rs 9.6 billion).

As per the latest shareholding pattern as on June 23, 2012, the public shareholders have 64.14 per cent -- which includes 0.99 per cent by foreign institutional investors, 3.31 per cent by domestic institutional investors, 49.84 per cent by non-institutional investors and 27 per cent by corporate bodies.