United Spirits shares rally on hopes of Diageo deal

Shares of United Spirits on Friday surged 6 per cent to 52-week high following reports that Vijay-Mallya led UB Group has reached a deal with the world's largest spirit maker Diageo for stake sale in the company.

After opening strong, shares of USL further jumped 6 per cent to Rs 1,425 - its highest level in a year on the BSE.

At NSE too, the scrip gained 6 per cent to touch a 52-week high of Rs 1,425.

As per news reports, the deal will be announced on Friday.

In September, United Spirits had confirmed that it was in talks with UK-based Diageo Plc for a stake sale.

"United Spirits and Diageo Plc confirm that the UK-based company is in discussion with it and United Breweries Holdings in respect of possible transactions to acquire an interest in the liquor firm," United Spirits had said in a filing to BSE.

USL is the world's second largest spirits maker after Diageo and markets various liquor brands including Signature, Bagpiper, Antiquity, Royal Challenge, Signature in the country.

Mallya-led United Breweries Holdings Ltd (UBHL), the promoter of USL, holds 18.03 per cent stake as on September 30.