Radico Khaitan is locked at the lower circuit for the third day in a row, down 5% at Rs 117, also its lowest level since September 2013 on the NSE, on media reports that the Japanese brewer and distiller Suntory Holdings (Suntory) may call off its deal with the company.
In the past five trading sessions, the stock has declined 20% from Rs 146 on April 9, against 1.5% decline in benchmark CNX Nifty during the period.
At 1000 hours, around 51,000 shares changed hands on the counter and there were pending sell orders for 522,000 shares on the NSE.
According to a CNBC-TV18 report, Suntory has changed its stance vis-a-vis the company post due diligence.
Suntory still has several other options in the market but was keenly looking out for this deal, as the company has been trying to make inroads in India for a while now, the report added.
On October 21, 2013, the board of Radico Khaitan had approved the transfer, sale, assignment, restructuring and disposal of the IMFL business undertaking into a separate arm.
The stock had seen a strong run-up on the bourses largely due to speculation that Suntory was set to acquire stake in Radico’s IMFL business, for about Rs 900 crore. The company’s IMFL segment has brands such as 8PM whisky and Magic Moments vodka. The stock had appreciated 93% from Rs 88.65 on July 24, 2013 to Rs 172 on January 24 this year.
In the past five trading sessions, the stock has declined 20% from Rs 146 on April 9, against 1.5% decline in benchmark CNX Nifty during the period.
At 1000 hours, around 51,000 shares changed hands on the counter and there were pending sell orders for 522,000 shares on the NSE.
According to a CNBC-TV18 report, Suntory has changed its stance vis-a-vis the company post due diligence.
Suntory still has several other options in the market but was keenly looking out for this deal, as the company has been trying to make inroads in India for a while now, the report added.
On October 21, 2013, the board of Radico Khaitan had approved the transfer, sale, assignment, restructuring and disposal of the IMFL business undertaking into a separate arm.
The stock had seen a strong run-up on the bourses largely due to speculation that Suntory was set to acquire stake in Radico’s IMFL business, for about Rs 900 crore. The company’s IMFL segment has brands such as 8PM whisky and Magic Moments vodka. The stock had appreciated 93% from Rs 88.65 on July 24, 2013 to Rs 172 on January 24 this year.
