United Spirits falls; banks sell to recover Kingfisher debt: reports

Tue Apr 2, 2013 1:19pm IST

A visitor walks past an alcohol stand during the TFWA (Tax Free World Association) exhibition in Cannes, southeastern France, October 19, 2009. REUTERS/Eric Gaillard/Files

A visitor walks past an alcohol stand during the TFWA (Tax Free World Association) exhibition in Cannes, southeastern France, October 19, 2009.

Credit: Reuters/Eric Gaillard/Files

Stocks

   

Reuters Market Eye - Shares in United Spirits Ltd (UNSP.NS) fall more than 4 percent on reports that banks have started selling stocks in India's biggest alcohol maker to recover Kingfisher Airlines Ltd (KING.NS) debt, dealers say.

"We are focussing on selling the pledged shares as fast as possible. Some share sale has started," DNA newspaper quoted Shyamal Acharya, deputy managing director of the State Bank of India as saying.

A block sale of 30,134 shares also happened on the National Stock Exchange at 1,833.70 rupees at 10:56 a.m. India time.

Deutsche Bank in a report says lenders might be tempted to sell pledged United Spirits shares in the open market to optimise realisation, compared with the 1,440 rupees open offer price.

However, it says, "we believe that it is in everyone's interest, particularly the lenders who have UNSP shares as collateral, to see the deal through."

The report quotes United Breweries' 2012 annual report to say 20.5 million shares of United Spirits were pledged with banks. That constitutes 15.7 percent of total outstanding shares of the company.

A United Spirits spokesman did not have any immediate comment when contacted by Reuters.

Shares of United Spirits were down about 2.4 percent at 1,844 rupees at 1:17 p.m.

(Reporting by Abhishek Vishnoi)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

India-WTO Standoff

India-WTO Standoff

India threatens to derail WTO deal, prompts angry U.S. rebuke  Full Article 

Economic Pulse

Economic Pulse

New govt promises low and stable tax regime for economic revival.  Full Article 

IPO Probe Ends

IPO Probe Ends

Facebook says SEC's IPO probe ends, extending WhatsApp closing date  Full Article 

World Stocks

World Stocks

Goldman Sachs downgrades stocks to neutral for short term  Full Article 

Disappointing Results

Disappointing Results

Amazon's far-reaching ambitions, lack of profits, unnerve investors  Full Article 

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Market Eye

Market Eye

Nifty retreats from record highs on profit taking.  Full Article 

Waning Enthusiasm

Waning Enthusiasm

Markets' post-election enthusiasm lost on consumers.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage