UB Group shares rally, UBL surges 7%

Shares of Vijay Mallya promoted UB Group companies such as United Spirits, United Breweries Ltd (UBL), United Breweries (Holdings) and Kingfisher Airlines are in limelight in noon trades, trading 2-7% higher on the Bombay Stock Exchange.

According to market buzz, Vijay Mallya and Heineken are in final stages of the negotiations and due diligence for UBL stake sale.

“Heineken currently holds 37.5% stake may look to acquire controlling stake in UBL. Vijay Mallya holds 23% stake in his personal capacity, may sell between 12-13% holdings held in UBL,” added report.

Currently, the UB group has been passing through a rough patch with the group's airlines business, Kingfisher Airlines, deep in the red and struggling to survive.

Recently, the Competition Commission of India (CCI) has cleared the proposed amalgamation of Scottish & Newcastle India (SNIPL) with Vijay Mallya-owned UBL. As a result of this, SNIPL would cease to exist and UBL would be the surviving entity.

Among the individual stocks, UBL and United Breweries (Holdings) have surged by 7% each, followed by United Spirits (up 6%) and Kingfisher Airlines (up 5.5%) on the BSE.