Kingfisher shares gain 5% at close

India's debt-laden Kingfisher Airlines extended gains after reports its chairman Vijay Mallya clinched a deal to sell a stake in United Spirits to Diageo, on hopes the money raised could be used to revive the carrier.

Diageo is set to acquire a 53.4 percent stake in United Spirits for more than $2 billion, according to an internal memo related to the deal obtained by Reuters.

Kingfisher's flight licence has been suspended by aviation regulators. Kingfisher shares closed the day on the BSE at Rs 13.53, a gain of 4.97% against the previous day's close.

(With inputs from Reuters)