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

Scotland Referendum

Scotland Referendum

Scots vote in record numbers, await independence verdict.  Full Article 

India-US Diplomacy

India-US Diplomacy

Obama to nominate Indian-American Richard Verma as India ambassador - congressional source.  Full Article 

GMR in Nepal

GMR in Nepal

Nepal clears India’s GMR plan for $1.4 bln hydroelectric plant.  Full Article 

LIC on Markets

LIC on Markets

LIC chairman bullish on Indian markets  Full Article 

India Rains

India Rains

Monsoon rains weaken as late retreat looms.  Full Article 

Ellison Quits

Ellison Quits

Oracle's Ellison steps aside, co-CEOs Catz and Hurd take over.  Full Article 

Infosys-Huawei

Infosys-Huawei

Infosys partners with China's Huawei for cloud-based services  Full Article 

Gold Outlook

Gold Outlook

Gold imports seen up, premiums likely to double on festive buying  Full Article 

Trade Dispute

Trade Dispute

U.S. to press India on trade row during Modi's Washington visit  Full Article 

Reuters India Mobile

Reuters India Mobile

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