HDFC invokes Mallya's shares worth Rs 40 cr in USL

Mallya's shares are being invoked by banks after SBI declared him as wilful defaulter after years of negotiation with the UB Group chairman

HDFC has invoked 150,000 shares of United Spirits, valued at Rs 47 crore, owned by Vijay Mallya joining other private banks such as YES Bank to tighten hold on the liquor baron, struggling to repay debts raised to run the now defunct Kingfisher Airlines. Kingfisher Finvest India, a unit of United Breweries Holdings, had pledged the shares of USL to HDFC, which the bank had invoked on November 23, USL told the stock exchange on Monday.

Mallya’s shares are being invoked by banks after State Bank of India declared him a wilful defaulter after years of negotiation with the UB Group chairman — to clear debt of Rs 8,700 crore to a consortium of 17 banks led by SBI — did not fructify.    

On November 28, United Breweries said in a notification to BSE the shares invoked by Yes Bank were pledged by the McDowell Holdings, a unit of UB Holdings, majority owned by Mallya. The UB stock closed at Rs 974.80 on BSE on Friday. YES Bank sold last week part of the UB shares  it invoked  to Heineken for around Rs 40 crore. The Dutch beverage maker now controls over 42  per cent stake in the Indian beer maker.