United Spirits gains on rise in promoter stake

While Sensex trades in red on Wednesday, stock of United Spirits Limited is trading with a positive bias on news that Diageo group owned entity Relay BV purchased 33,10,515 shares in the company at a price of Rs. 591.95 per scrip.

Relay BV is a promoter entity of United Spirits. Post acquisition of shares, the promoter now holds 55.24 per cent of the company’s total stake as compared to 54.78 per cent it held earlier.

On Tuesday, the Debt Recovery Tribunal had sold more than a total of 33.1 lakh (33,10,515) shares of United Spirits for around Rs. 196 crore.

The company had impressed the Street with better than expected earnings for the June quarter. Its standalone revenue rose by 10.4 per cent year-on-year (YoY) to Rs. 7,077.8 crore as compared to Rs. 6,412.1 crore in same quarter last year. Net profit also recorded a two-fold jump at Rs. 197.4 crore in Q1FY20 compared to Rs. 81.3 crore in Q1FY19.

United Spirits is a spirits company engaged in the business of manufacture, purchase and sale of alcoholic beverages. The Company operates through two segments: India and Outside India.

On Wednesday, the stock opened at Rs. 578.10 and gained nearly 3 per cent to hit an intraday high of Rs. 597.90 on the BSE. At 14.52, the stock was trading nearly at Rs. 580.80 on the BSE. The stock had hit its 52-week high of Rs. 680 and its 52-week low of Rs. 439.00 on the BSE.