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United Spirits nears lifetime high

The stock as rallied 21% since UK-based Diageo plc has commenced its open offer to acquire an additional 26% in United Spirits on April 10.

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SI Reporter Mumbai
Last Updated : Apr 17 2013 | 12:43 PM IST
United Spirits has rallied 7% to Rs 2,178, its highest level since January 2008 on the National Stock Exchange (NSE).

The stock is currently trading near to its lifetime high of Rs 2,190 touched in October 2007. It has rallied 21% since UK-based Diageo plc has commenced its Rs 5,441 crore open offer to acquire an additional 26% in United Spirits at an offer price of Rs 1,440 per share on April 10. The open offer shall close on April 26, 2013. The benchmark Nifty has gained 2.4% during the same period.

According to Nomura’s analysis, Diageo is widely expected to gain management control of United Spirits even as its open offer for shareholders, which launches on  last week, is seen as unlikely to succeed after the global spirits maker did not raise the offer price.

The stock opened at Rs 2,027 and hit a low of Rs 2,010 in early morning trades. A combined 2.59 million shares have already changed hands on the counter till 1225 hours against an average sub 2.1 million shares that were traded daily in past two weeks on NSE and BSE.

 

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First Published: Apr 17 2013 | 12:34 PM IST

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