Sensex 29182.95 -498.82 -1.68%
Nifty 8808.9 -143.45 -1.6%
Vijay Mallya is planning to make a 10% preferential allotment in his flagship company, United Spirits (USL), to the former, says media reports.
According to reports, preferential allotment of 10% will happen before May 26, for which Diageo will be paying Rs 20.94bn.
Diageo’s move to acquire a further 17.4% stake for Rs 3,632 crore will depend on what the judge at the Karnataka high court (HC) will decide, after hearing winding-up petitions on UB Holdings, report said.
As part of the agreement between Diageo and Mallya in early November 2012, the former was to get 12.8% stake from UBH’s holdings in USL.
India Infoline News Service / 09:04, Jan 22, 2015
The outlook is a flat start. The market will look to scale to new peaks though not much effort is needed for the same. HUL saw a rally and short-covering may have pulled it up further. Speculation is on that its parent will raise stake through an open offer. After the cooling in oil prices, Cairn results will be in focus.