Vijay Mallya flies, but 2 lakh investors grounded

February 29, 2016

New Delhi, Feb 29: Over two lakh investors are estimated to be stuck with shares of long-grounded Kingfisher Airlines even as its lenders are now eyeing the Rs 515-crore bounty sealed by main promoter Vijay Mallya as part of a sweetheart deal' to exit United Spirits.

mallya
Diageo, the new owner of United Spirits Ltd (USL), has in return agreed to absolve Mr Mallya of all his personal liabilities' with regard to alleged financial irregularities relating to dealings with UB Group entities.

But USL has asserted that the recovery of loans worth Rs 1,337 crore would be pursued from United Breweries Holdings Ltd (UBHL) through dialogue or other legal means'.

Interestingly, UBHL is now left with a total market value of just about Rs 148 crore although it continues to have more than 51,000 public shareholders, including over 50,000 small retail investors.

Other shareholders include 14 mutual funds, 14 banks/ financial institutions, 10 foreign portfolio investors, one insurer, one government entity, and nearly 100 high net-worth investors (HNIs).

The total number of public shareholders has come down from over 56,000 a year ago, including over 53,000 small retail investors and nearly 175 HNIs.

In the case of Kingfisher Airlines, trading in its shares has been suspended for a long time due to its non-compliance to various listing requirements, including its failure to make timely disclosure of shareholding data and other details.

As per the latest shareholding data disclosure till September 2014, it had over 2.33 lakh small retail investors, over 6,200 HNIs, 13 banks, and other domestic financial institutions, as also five promoter entities.

Ironically, the number of public shareholders across all categories was higher than the levels before the airline was grounded in October 2012. The total number of public shareholders went up during this period from 2.1 lakh to over 2.4 lakh. The company now commands a market cap of just about Rs 110 crore, against that of close to Rs 10,000 crore before it landed in financial mess leading to its grounding.

The airline's unpaid loans worth thousands of crores of rupees led to several banks, including the State-run SBI declaring Mr Mallya, Kingfisher, and UBHL wilful defaulters.

The banks are now said to be eyeing the $75-million (Rs 515 crore) payment that Diageo has agreed to pay to Mr Mallya as part of the deal for his exit as chairman and non-executive director of United Spirits, where UB Group had earlier sold controlling stake to the global liquor giant.

The finer contours of the deal, as also the share price movements in run-up to its announcement and the transfer of liabilities from Mr Mallya to UBHL, are already being scrutinised by various regulatory authorities, including Sebi and the Ministry of Corporate Affairs.

An USL spokesperson had earlier said that they had not received any request from Sebi to date. “Clearly if we do, we will of course provide any information required.”

Comments

MR
 - 
Monday, 29 Feb 2016

Why insn't this rich thief in Jail.?
Is Jail only for the poor?

suleman
 - 
Monday, 29 Feb 2016

Confiscate this RS 515 Crores and pay this to the share holders,investors etc. This should not be another Union Carbide which sold to Dow chemicals and washed its hand.

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coastaldigest.com news network
December 20,2025

Mangaluru, Dec 20: City Police Commissioner Sudheer Kumar Reddy has issued a high-alert warning to vehicle owners regarding a surge in cyber fraud targeting those looking to pay traffic violation fines. Fraudsters are reportedly exploiting recent government discount schemes on traffic penalties to deceive citizens.

The Scam: How Fraudsters Strike

Criminals are using SMS, WhatsApp, and social media to circulate suspicious links and APK files (Android application packages). They claim these apps allow users to pay e-challans at a discount.

•    Device Hacking: Downloading these unauthorized apps gives hackers full access to the victim's smartphone.

•    Financial Theft: Once the phone is compromised, fraudsters intercept OTPs and personal data to drain bank accounts.

•    Phishing Sites: Fake websites mimicking official portals are also being used to harvest banking credentials.

Already, two residents within Mangaluru city limits have reported significant financial losses after falling victim to these fraudulent apps.

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News Network
December 16,2025

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Melkar (Bantwal): The 9th Annual Day celebration of SMR Public School, titled “EXCELLENTIA”, was held on December 15 with great enthusiasm and dignity, marking a significant milestone in the institution’s journey towards academic excellence and holistic development.

The programme was inaugurated by Dr. U. T. Iftikar Ali. The chief guests were Dr. Akhtar Hussain, Mr. P. Moosabba Beary, Mr. Zakaria Jokattre, and Dr. T. M. Abdul Rahuf—whose inspiring addresses motivated the students and appreciated the school’s contributions to education.

Mr. Abdul Nasir, Mr. Ibrahim Gadiyar, Mr. Razak Golthamajal, Mr. Sali Koya, Mr. Arshad Hussain, Mr. Ismail Balanoor, Mr. Feroz Bawa, Mr. Sahul Hameed, Mr. Abubakkar, Mr. Hameed K. Mani, Mr. Abdul Majeed (Principal, Melkar Women’s College), and Mr. Abdul Lathief (Former Principal, Melkar Women’s College) were the guests of honour.

The Annual Report was presented by the Headmistress, Ms. Fathimathul Zaheera, highlighting the school’s achievements and progress during the academic year. The Presidential Address was delivered by the Chairman of SMR Public School, Dr. Haji S. M. Rasheed, who emphasised the vital role of education in shaping students’ futures and stressed the importance of discipline, dedication, and consistent effort in achieving 100 per cent academic results.

Secretary of SMR Public School, Mr. Rifath Ahmed, and PTA President, Mr. Sandeep Kumar, were also present on the occasion.

The Annual Day celebration showcased the collective efforts of students and teachers and reaffirmed the school’s commitment to quality education and all-round development. The programme concluded with a vote of thanks, expressing gratitude to all dignitaries, parents, and well-wishers for their support. The 9th Annual Day—EXCELLENTIA—was a memorable and successful event, leaving a lasting impression on everyone present. 

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News Network
December 15,2025

Mangaluru, Dec 15: Air India Express has announced that it will resume direct flight services between Mangaluru and Muscat from March 2026, restoring an important international air link for passengers from the coastal region.

Airport authorities said the service will operate twice a week—on Sundays and Tuesdays—from March 1. The initial flights are scheduled on March 3, 8 and 10, followed by March 15 and 17, with the same operating pattern to continue thereafter. The flight duration is approximately three hours and 25 minutes.

The Mangaluru–Muscat route was earlier operated under the 2025 summer schedule, with services beginning on July 14. At that time, Air India Express had operated four flights a week before suspending the service.

Officials said the summer schedule will come into effect from March 29, after which changes in flight timings and departure schedules from Mangaluru are expected. Passengers have been advised to check the latest schedules while planning their travel.

The resumption of direct flights to Muscat is expected to significantly benefit expatriates, business travellers and others, further strengthening Mangaluru’s air connectivity with the Gulf region.

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