Liquor baron Vijay Mallya-owned cash strapped carrier, Kingfisher Airlines (KfA), in their filing to the Bombay Stock Exchange (BSE) has capped foreign portfolio investments at 3% to facilitate enough space for foreign investor to buy almost as much as 46% stake in the company.
In their filing on Thursday, KfA said, “ with a view to keeping the company’s capital structure in readiness for transactions that may be identified in the future for the benefit of all stakeholders of the company, the Board has decided and passed a resolution that with immediate effect and in accordance with the Foreign Exchange Management Act 1999 and the Companies Act, 1956, no FII, Qualified Foreign Investor or other non-strategic foreign investment excluding investment by NRI) shall be permitted in the company beyond its current level of 3% or such other percentage that the Board may decide from time to time under intimation to the stock exchanges”.
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