United Spirits rose 6.50% to Rs 2215 at 10:59 IST on BSE on reports Diageo Plc is considering increasing its majority stake in United Spirits.
Meanwhile, the BSE Sensex was up 137.18 points, or 0.50%, to 27,372.84.
On the BSE, so far 1.38 lakh shares were traded in the counter, compared with average daily volumes of 26,445 shares in the past one quarter. The stock had hit a high of Rs 2,232 and a low of Rs 2,100 so far during the day.
The stock hit a 52-week high of Rs 2,864.75 on 25 January 2016. The stock hit a 52-week low of Rs 1,775.05 on 22 November 2016. The stock had outperformed the market over the past 30 days till 17 January 2017, rising 7.77% compared with the 3.26% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 14.21% as against Sensex's 2.68% decline.
The large-cap company has equity capital of Rs 145.33 crore. Face value per share is Rs 10.
According to reports, Diageo Plc is considering increasing its majority stake in Indian whiskey producer United Spirits. Diageo is reportedly planning an open offer to the other shareholders in United Spirits.
Relay B.V., an indirect wholly-owned subsidiary of Diageo Plc, holds 54.78% stake in United Spirits (as per the shareholding pattern as on 31 December 2016). Under Indian stock market regulations, Diageo could raise its stake to just under 75% without triggering a delisting offer.
Diageo gained complete control of the board of United Spirits post the exit of Dr Vijay Mallya from his position as chairman and non-executive director of United Spirits in February 2016.
Meanwhile, United Spirits announced after market hours yesterday, 17 January 2017, that ICRA has revised the long-term rating outstanding on the Rs 2900 crore term loan facilities (revised from Rs 3000 crore) of United Spirits to [ICRA]AA (pronounced as ICRA double A)2 from [ICRA]A+ (pronounced as ICRA A plus). The outlook on the long term rating is Positive.
ICRA has also reaffirmed the short-term rating outstanding on the Rs 2400 crore fund based facilities and the Rs 400 crore non-fund based facilities of USL at [ICRA]A1 + (pronounced as ICRA A one plus).
ICRA also has reaffirmed the rating outstanding of [ICRA]A1+ (pronounced ICRA A one plus) on the Rs 1000 crore commercial paper programme of the company.
Net profit of United Spirits rose 15.9% to Rs 82.54 crore on 7.7% rise in net sales to Rs 2037.70 crore in Q2 September 2016 over Q2 September 2015.
United Spirits makes alcoholic beverages. It is a subsidiary of British multinational Diageo plc.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
