UB Group shares rally on stake sale in Force One

Shares of Vijay Mallya-led UB Group such as United Breweries, Kingfisher Airlines, United Breweries Holdings and McDowell Holdings are trading higher by more than 2% each after UB Group sold a stake of 42.5% in its Formula 1 team – Force India – to Subroto Roy-led Sahara Group. The team would henceforth be known as Sahara Force India.

"The UB Group have arrived at a partnership with the Sahara Group, which will invest $100 million (approx Rs 4,900 crore) in the team and would now own an equity stake of 42.5%, Vijay Mallya will own 42.5% and the rest 15% would be owned by the Mol family," the reports suggest quoting UB Group promoter Vijay Mallya.

Among the individual stocks from UB Group, Kingfisher Airlines and United Breweries (Holdings) rallied 5% each at Rs 21.90 and Rs 114 respectively, followed by United Breweries (4%) and McDowell Holdings (3%) on the Bombay Stock Exchange.