United Spirits plummets 5% after Hina Nagarajan set to step down as MD, CEO

Investors dumped the shares of United Spirits on Tuesday, after the company announced a leadership transition, with CEO Hina Nagarajan set to step down on March 31, 2025. United Spirits share price dipped 5.2 per cent at Rs 1,405.60 per share on the BSE in intraday trade. 

 

Nagarajan joined the company as CEO-Designate in April 2021 and assumed the role of Managing Director and CEO on July 1, 2021. During her tenure, she successfully drove strong top-line growth and margin expansion while spearheading impactful strategic initiatives. Her leadership reshaped and premiumised the company's portfolio, establishing it as an innovative leader in the AlcoBev industry. Under her guidance, the company’s market capitalisation exceeded Rs 1 trillion (approximately $12.5 billion).

 

“After 4 very successful years with the Company, Hina Nagarajan will be taking up a new role within the Diageo group and has accordingly tendered her resignation as (i) Director (ii) Managing Director and (iii) Chief Executive Officer of the Company effective end of day 31st March, 2025,” the company said in an exchange filing on Monday.

 

Praveen Someshwar will be Nagarajan’s successor effective 1st March, 2025 as he has been appointed as the new Chief Executive Officer. Someshwar will closely work with Nagarajan up to 31st March, 2025. Further, effective 1st April, 2025, Someshwar will assume office as the new Managing Director & Chief Executive Officer of the Company, the company said.

 

For the past five years,  Someshwar has served as the Managing Director and CEO of HT Media Limited, one of India’s most prominent media groups. He has overseen a range of digital, print, and radio platforms, including Hindustan Times. Before joining HT Media, Someshwar had a distinguished 24-year career at PepsiCo, holding key roles in General Management, Finance, and Strategy across India and the Asia-Pacific region.

 

United Spirits has a total market capitalisation of Rs 1.02 trillion. Its shares are listed at a price to earnings multiple of 78.95 and at an earning per share of 18.78.

 

At 10:49 PM, the stock price of the company declined by 4.53 per cent at Rs 1415.60 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.47 per cent to 76,686.35 level.

 

United Spirits Limited (USL) is an Indian alcoholic beverages company and ranks as the world's second-largest spirits producer by volume. A subsidiary of Diageo, USL is headquartered at UB Tower in Bangalore, Karnataka. The company has a significant global presence, exporting its products to more than 37 countries.