This Article is From Feb 21, 2017

United Spirits Shares Jump On Diageo Stake Hike Buzz

United Spirits Shares Jump On Diageo Stake Hike Buzz

Analysts said rising per capita income of the growing middle-class will boost demand for USL products.

United Spirits Limited or USL shares rose more than 4 per cent to touch an intraday high of Rs 2,426.20 on media reports suggesting British alcoholic beverages company Diageo Plc "may explore other options to increase stake" in the spirits maker. The Bombay Stock Exchange or BSE sought a clarification from Bengaluru-based United Spirits. A reply from the domestic spirits company was awaited, the exchange said in a notification.

United Spirits shares saw an over two-fold spurt in trading volumes during Tuesday's session.

Analysts said India's growing middle-class and rising per capita income will boost demand for United Spirits products.

At 1:06 pm, 71,047 United Spirits shares had changed hands, compared with an average of 36,000 in the past two weeks. USL shares were trading 2.77 per cent higher at Rs 2,404.85 apiece on the BSE, whose benchmark Sensex index was down 36 points, or 0.13 per cent.

As of December 31, 2016, Diageo held a 55.02 stake in United Spirits, as per the company's latest disclosure to the stock exchanges.