USL to offer upto 11.5% return on public deposit scheme

Company's aggregate deposits stood at 436 cr at the end of the financial year ended March 31, 2013

UB Group firm United Spirits Ltd, in which Diageo has a significant stake, today launched a fixed deposit scheme offering interest of up to 11.5%.

While the company did not specify the exact amount it plans to raise, the current regulations and its financial position allow it to garner a cumulative amount of Rs 2,233 crore through public deposits, United Spirits Ltd (USL) said in a public announcement.

The company said the aggregate of deposits already held by it stood at Rs 436 crore at the end of financial year ended March 31, 2013. This leaves a scope for garnering nearly Rs 1,800 crore.

Vijay Mallya-led USL said it would accept deposits for a period of one-year at a rate of 11% and 11.5% for a two years time-frame.

Diageo Plc, the world's largest spirits maker, completed its acquisition of a 25.02% stake in USL in July, getting less than half of what it had originally planned.

Last year, Diageo had announced that it would pick up 53.4% stake in USL in a multi-structured deal for a total of Rs 11,166.5 crore. Instead, it now has 25.02% stake in USL for a total consideration of Rs 5,235.85 crore.