 "United Spirits extends rally on heavy volumes")
United Spirits has rallied nearly 6% to Rs 2,199, extending its Tuesday’s over 5% surge on the BSE, after a Bloomberg repot suggested that Diageo Plc is considering increasing its majority stake in the company.
In past two trading sessions, the stock has soared 12.5% from Rs 1,954 on Monday, and has gained 20% from its recent low of Rs 1,826 touched on December 26, 2016. It hit a 52-week low of Rs 1,775 on November 22, during intra-day trade.
Diageo Plc, the maker of Johnnie Walker scotch and Smirnoff vodka, has a 55% stake in United Spirits. The UK distiller agreed to acquire a stake in United Spirits, the maker of McDowell’s No. 1 whiskey and Romanov vodka, in 2012. It bought a further 26% stake through an open offer in 2014 for Rs 3,030 a share raising its holding to 54.8%. The stock hit a record high of Rs 4,080 on March 5, 2015 in intra-day trade.
Earlier, in May 3, 2016 on the report, Diageo in initial talk to hike stake in Untied Spirits to 72%, the company clarified that they were not aware of any such talks and unable to comment on the same.
Meanwhile, United Spirits said it has received revised ratings of company’s term loans, fund based facilities and non-fund based facilities.
The ratings from ICRA reflect strong financial flexibility; strengthened corporate governance, compliance practices and framework, post-acquisition of Management control by Diageo Plc. Diageo is rated A3, i.e. stable by Moody’s.
United Spirits has completed the transition from its earlier promoters, including termination of historical contracts with former group companies and also completion of additional enquiries during July 2016. With this it has removed uncertainties related to contingent liability, arising from the same, ICRA said in a release.
At 10:00 am; the stock was up 5.5% at Rs 2,195 on the BSE as compared to 0.63% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 628,188 shares changed hands on the BSE and NSE so far.
In past two trading sessions, the stock has soared 12.5% from Rs 1,954 on Monday, and has gained 20% from its recent low of Rs 1,826 touched on December 26, 2016. It hit a 52-week low of Rs 1,775 on November 22, during intra-day trade.
Diageo Plc, the maker of Johnnie Walker scotch and Smirnoff vodka, has a 55% stake in United Spirits. The UK distiller agreed to acquire a stake in United Spirits, the maker of McDowell’s No. 1 whiskey and Romanov vodka, in 2012. It bought a further 26% stake through an open offer in 2014 for Rs 3,030 a share raising its holding to 54.8%. The stock hit a record high of Rs 4,080 on March 5, 2015 in intra-day trade.
Earlier, in May 3, 2016 on the report, Diageo in initial talk to hike stake in Untied Spirits to 72%, the company clarified that they were not aware of any such talks and unable to comment on the same.
Meanwhile, United Spirits said it has received revised ratings of company’s term loans, fund based facilities and non-fund based facilities.
The ratings from ICRA reflect strong financial flexibility; strengthened corporate governance, compliance practices and framework, post-acquisition of Management control by Diageo Plc. Diageo is rated A3, i.e. stable by Moody’s.
United Spirits has completed the transition from its earlier promoters, including termination of historical contracts with former group companies and also completion of additional enquiries during July 2016. With this it has removed uncertainties related to contingent liability, arising from the same, ICRA said in a release.
At 10:00 am; the stock was up 5.5% at Rs 2,195 on the BSE as compared to 0.63% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 628,188 shares changed hands on the BSE and NSE so far.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%