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Vijay Mallya’s United Spirits stocks soar

Mumbai, Apr 17 () : United Spirits’ stock is currently trading at a high of Rs 2,190 touched earlier in October 2007.

It has shot up 21% after UK-based Diageo plc has started on April 10 the Rs 5,441 crore open offer to acquire an additional stock of 26% in United Spirits at price of Rs 1,440 per share. The offer will close on April 26, 2013. Nifty has gained 2.4% during the same period.

According to broking analysis, Diageo is expected to get management control of United Spirits even its open offer to shareholders, which launched last week, is unlikely to succeed since the global spirits maker Diageo did not raise the offer price. In the past weeks, a sub 2.1 million shares were traded daily but today it touched 2,59 million was trading at Rs2010 after it opened at Rs 2027.

Diageo would have all the key posts in the company while Vijay Mallya would continue as Chairman. The UK liquor company would bring in the premium brands and at the same time beniefit from United Spirits that are leaders in India and some countries abroad.

Diageo would also infuse more money. The liquor industry is witnessing a demand for premium whisky and vodka from the youth. This would favour Diageo.