UB to raise Rs 425cr via rights issue

United Breweries (UB) has announced that it will raise upto Rs 425 crore through a rights issue.

The ratio of this issue to the existing shareholders will be decided at a later date.

The company which is focusssed on the beer sector, is raising funds for a Rs 1,200 crore capacity expansion to 170 million cases from the present 100 million. Scottish & Newcastle, a UK-based brewery major, holds 37.5% in UB.

UB stock was trading at Rs 385 a share, up 1.3% over yesterday's close on the Bombay Stock Exchange.