United Spirits lost 3.21% to Rs 2274.55 at 12:33 IST on BSE, with the stock sliding amid volatility after the company said it has entered into an asset purchase agreement with J P Impex Incorp.
The announcement was made before market hours today, 11 July 2014.
Meanwhile, the S&P BSE Sensex was down 209.86 points or 0.83% at 25,162.89.
On BSE, so far 61,000 shares were traded in the counter as against average daily volume of 1.81 lakh shares in the past one quarter.
The stock was volatile. The stock lost as much as 3.36% at the day's low of Rs 2,270.80 so far during the day. The stock rose as much as 0.99% at the day's high of Rs 2,373.35 so far during the day. The stock hit a record high of Rs 2,940.55 on 15 April 2014. The stock hit a 52-week low of Rs 1,993.30 on 28 August 2013.
The stock had underperformed the market over the past one month till 10 July 2014, sliding 17.6% compared with Sensex's 0.82% fall. The scrip had also underperformed the market in past one quarter, declining 9.12% as against Sensex's 11.7% rise.
The large-cap company has equity capital of Rs 145.33 crore. Face value per share is Rs 10.
United Spirits said it has entered into an asset purchase agreement with J P Impex Incorp, a partnership firm, inter-alia for purchasing from the firm, the building, plant and machinery, licenses, transfer of lease hold rights on the land, all relating to the factory for a total consideration of Rs 11.50 crore on the terms and conditions.
The purchase of the above assets and the completion of the transaction, inter-alia, would facilitate an increase in the company's licensed Indian Made Foreign Liquor (IMFL) production capacity in the Karnataka, which the company proposes to use for tetra pak production and availing logistical advantage, United Spirits said in a statement.
The closing of the transaction is subject to the fulfillment of certain conditions precedents by the firm, as stated in the agreement, United Spirits said.
United Spirits is yet to announce its financial performance for Q4 and year ended 31 March 2014. United Spirits' net profit declined 19.4% to Rs 64.92 crore on 4.8% growth in net sales to Rs 2278.40 crore in Q3 December 2013 over Q3 December 2012.
United Spirits is the largest alcohol beverage company in India.
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