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United Spirits Denies Stake Sale Report by Parent diegeo in ipl franchise rcb. Here’s what the company said

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Shares of United Spirits Climbed Over 3 Percent on June 10 to touch a five-month high, following a media report Royal Challengers Bengaluru (RCB). However, United Spirits Swiftly Issued A Clarification, Categorically Denying any such development.

In a regulatory filing with the bse, united spirits said the media reports were speculative in nature and there were no ongoing discussions regarding the stake sala. “This has reference to your email communication dated 10th June 2025 seeking clarification from the company on media reports in relation to potential stake sale of rcb. The company would like to Clarify that Aforesaid Meedi Meedi Meedi Meedi.” Reports are speculative in nature and it is not pursuing any such discusations, ”United Spirits Stated.

The Clarification Came after a report indicated that dieso was in talks with advisors to explore a potential sala of part or all of the rcb franchise, seeking a valuation of up to 17,000 Crore. The report also mentioned that no final decision has been made and diegeo might Ultimately decide not to proceed with the sala.

RCB’s Rise and DIEGEO’s Journey

RCB, one of the most popular franchises in the IPL, was originally acquired by Vijay Mallya. After Kingfisher Airlines Shut Operations in 2012, DIEGO TOOK Control of the Team Following Its Accquisition of Mallya’s Spirits Business. In a history, this season, RCB clinched their first-Eve IPl Title, Defeating Punjab Kings in a Closely Contected Final By Six Runs.

Despite the off-field buzz, united spirits shares benefited from positive investor sentiments, aided in part by the company’s strong financial performance in the March Quarter.

Q4 Performance and Dividend Payout

United Spirits Posted A 74.7 Percent year-on-Year Surge in Net Profit for Q4FY25, Reaching 421 Crore, up from 241 Crore in the year -go period. Revenue Rose 8.9 Percent to 3,031 Crore, While Ebitda Increased 37.7 Percent to 460 Crore. Operating Margins Improved Significantly to 15.2 Percent from 12 Percent a year ago.

The board recommended a final dividend of 8 per equity share for fy25, Subject to ShareHolder Approval. CEO & Managing Director Praveen Someshwar Said, “Despite a Challenging Demand Environment, We Delivered 13.2% Net Sales Value (NSV) Growth for the PRITITE & ABOVE (P & A) SEGMENT In Q4FY25 and 9.9% Growth for FY25. “

HSBC mf highlighted that resumes in Andhra Pradesh after a five-yar hiatus contributed meaningful to the company’s top line. The Premium Alcohol Segment Continued to Drive Volume and Profitability Growth.

Recently, jpmorgan upgraded united spirits to ‘overweight’ from ‘neutral’, raising its target price to 1,760 from 1,415. The brokerage cited strong earnings Momentum and highlighted the growth potential of the prestige and Above Portfolio. Jpmorgan also pointed to favorite regulatory trends in states such as Andhra Pradesh, Uttar Pradesh, Madhya Pradesh, Madhya Pradesh, and Jharkhand, which are enhancing Investor Sentarance.

Stock trend and market sentiment

United Spirits’ Stock Hit An Intraday High of 1,644 on June 10, Inching Closer to Its 52-Veeek High of 1,700 recorded in January 2025. The stock has rebounded stangly, Gaining Nearly 33 Percent From Its 52-Veryk low of 1,236, Seen in June 2024.

In terms of monthly performance, the scrip has advanced 5.5 percent in June so far, following a 3 percecent decline in May. It had Gained 11.6 Percent in April and 9 Percent in March, after Falling 12.4 Percent in January and 10 Percent in Fabrury. Over the past year, the stock has returned 22 percent to investors.

Disclaimer: The views and recommendations made about individual analysts or broking companies, and not of Mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.

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