KINGFISHER AIRLINES: STRAWS IN THE WIND

• As all are perhaps aware that the KFA lifeline, as it were, is strongly based upon the premise that at some stage the new Civil Aviation Policy will look favourably at allowing foreign carriers to pick up upto 49% stake in Indian Carriers.
• There is increasing buzz in reliable circles that the above game-changer, if one might call it that, is likely to be announced early next week. Simply put, it seems that the Government is all set to give the nod to the proviso allowing foreign carriers to pick up upto 49% stake in Indian carriers.
• In fact, the Indian Express has today prominently reported that the cabinet nod for the above would come about 'very soon'. Some reportage has even indicated that this could happen on Monday itself. As per the news report, foreign carriers desirous of picking up the 49% stake in listed companies would obviously first have to acquire the shares through the open offer route since the relevant SEBI guidelines would be triggered in case the holding goes above 25%.
• In any case, it promises to be an action packed week for the KFA stock next week with speculators, traders and investors likely to make the proverbial bee-line for the Scrip sensing the lip-smacking prospects of an open offer in the counter as also the renewed possibility of a realistic resurgence in the ailing Airlines Balance Sheet.