Mallya and his UB Group companies, including Kingfisher Finvest, held a 32.12 per cent stake in the airlines as of September.
Grounded carrier Kingfisher Airlines on Wednesday said promoters United Breweries Holdings and Kingfisher Finvest India have released about 5.64 crore pledged shares.
Vijay Mallya on Wednesday gave a proposal to the Supreme Court to repay around Rs 4,000 crore (Rs 40 billion) loan to banks by September this year.
Indian banks on Thursday rejected the loan repayment offer made by Vijay Mallya.
Banks are seeking an order that Mallya should appear in person before the court.
Diageo-USL integration pushed by at least two months; Firm likely to rework agreements and seek approval again