Foreign institutional investors (FIIs) have offloaded 10.64% stake in Vijay Mallya's key company ahead of the Diageo-United Spirits deal.
As per a revised shareholding pattern filed by United Breweries Holding Ltd (UBHL), in just over a month, three FIIs -- Platinum Investment Management, Colonial First State Investment and ACACIA Banyan -- sold 10.64% stake in UBHL. The revision came after an earlier September quarter filing by UBHL showed that three of its promoter group companies -- Mallya Pvt Ltd, Kamsco Industries and Gem Investment and Trading Pvt Ltd. -- had together sold 8.41% stake in UBHL.
However, the company hasn't clarified the reasons for the earlier error in filing the shareholding pattern. UBHL filed the revised shareholding on November 9, which shows promoter holding in the company at 50.27% compared to earlier 43.09% at the end of September quarter. In June, promoter holding in UBHL stood at 51.5%.
Following the September quarter shareholding filing, Securities and Exchange Board of India (Sebi) had asked the UB Group chairman and UBHL to submit information on the drop in 8.41% holding in UBHL. Sebi's Takeover Regulations and Prohibition of Insider Trading Regulations say promoters have to disclose within two working days to the regulator and exchanges about any change in shareholding pattern if they are involved in buying or selling of shares.
However, UBHL's latest filing shows that three promoter firms Mallya Pvt. Ltd, Pharma Trading Company and Kamsco Industries have pledged their shares, which constitutes to 7.75% stake.
Thus, promoter holding in UBHL is down only 1.23%, disclosure for which is still awaited. Legal experts said such errors attract a penalty as it causes loss to shareholders. UBHL is the holding company for Mallya’s United Spirits Ltd (USL) apart from Kingfisher Airlines (KFA) and is the key beneficiary of the Diageo deal. UBHL holds 18.03% in USL. In September, Platinum Investment that manages more than Australian dollar $14 billion in New Zealand, Europe, America and Asia, held 10.19% stake in UBHL. But a revised filing by UBHL in November shows Platinum has sold its stake in the company and currently holds no share or less than one% stake in the company. Similar, is the case with Colonial First State Investment, another Australian fund manager, and ACACIA Banyan that held 1.10% and 1.51% stake in UBHL in September.
|Share Holding pattern|
|in %||Nov 9, 2012||Sep 12, 2012||June 12, 2012|
The share price of UBHL saw a three-fold rise from a 52-week low of Rs 53 in June to touch a high of Rs 155 in September, on the Bombay Stock Exchange (BSE). The counter saw sharp rise and fall in the past few months on the back of rumors, which were later confirmed by the company, on the Diageo-USL deal. UBHL was locked in a lower circuit of 5% today at Rs 129.