Reliance MF picks up 3.5% in Air Deccan

Mumabi: Reliance Vision, a mutual fund scheme under the Reliance Mutual Fund umbrella, has acquired a 3.5% stake in Air Deccan. A Reliance Capital spokesperson said the stake has been acquired over the past few months purely as a mutual fund play, one amongst many in the mutual fund portfolio.
Commenting on the group’s plan to pick up a strategic stake in the airline, he said the company has no plans to enter the aviation business. The average price of the acquisition could not be ascertained. The Air Deccan share fell 10% to Rs 119 on BSE.
Sources see the interest as good news for the sector that has received a severe drubbing on the bourses in 2006.
“The fact that institutional investors are beginning to see the potential in the business is a healthy sign,’’ says Vijay Mallya, chairman, Kingfisher Airlines.
13/12/06 Economic Times

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