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Liquor shares rally post USL-Diageo deal, USL soars 27%

Khoday India, GM Breweries, Tilaknagar Industries and Radico Khaitan are up 5-17% on the BSE.

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SI Reporter Mumbai
Last Updated : Jan 21 2013 | 5:46 PM IST

Shares of breweries and distilleries makers have rallied up to 27% after the UK-based Diageo Plc said it will buy 53.4% stake in the company for Rs 11,167 crore.

On Friday, Diageo has agreed to buy 27.4% stake in the Vijay Mallya-owned liquor company. Post an open offer for 26%, Diageo will own 53.4% in United Spirits that will involve a total payout of Rs 11,166.5 crore.

British liquor giant Diageo Plc have also made an open offer to acquire 18.4% stake in another UB Group company Pioneer Distilleries at a price of Rs 60 per share. The open offer price is almost 60% higher than Thursday’s closing price of Rs 37.75 on the BSE.

Shares of United Spirits soared by over 27% at Rs 1,730, also its record high on back of heavy volumes, while Pioneer Distilleries has locked in 5% upper circuit of Rs 41.55 on the BSE.

Among the other individual stocks, Khoday India has soared 17% to Rs 54, followed by GM Breweries (up 13% at Rs 93), Tilaknagar Industries (up 8% at Rs 70) and Radico Khaitan (up 5% at Rs 134).

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First Published: Nov 12 2012 | 1:20 PM IST

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