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)

Reuters Showcase

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Uber's Woes

Uber's Woes

Uber, other taxi-hailing apps hit new roadblock in Delhi.  Full Article 

Transfer Pricing

Transfer Pricing

India's Vodafone decision eases tax worries for Shell, others.  Full Article 

Renewable Energy

Renewable Energy

NTPC bars foreign bids for three solar projects  Full Article 

Reuters India Mobile

Reuters India Mobile

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