Shares of United Breweries Holding Ltd (UBHL) group firms Pioneer Distilleries and Kingfisher Airlines hit the lower circuit on Tuesday, signalling that troubles for chairman Vijay Mallya were far from being over.
The lower circuit prevents further trades in a stock during the day at a lower price.
Pioneer Distilleries fell 5% to Rs. 44 both on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), after promoter United Spirits fixed a floor price of Rs. 38 per equity share for selling 7% in the company, a discount of over 20% to the current market price.
As on September 30, United Spirits held 81.99% stake in Pioneer Distilleries.
Shares of debt-ladden Kingfisher Airlines also tumbled by 4.6% to Rs. 10.4 on both the BSE and the NSE after employees rejected the airline’s offer of payment of three months’ salary.This is the second consecutive day that the stock had hit the lower circuit.
Kingfisher on Monday offered its striking employees staggered payment of three months’ salary dues before Diwali in mid-November in a bid to get them back to work. However, a section of employees rejected the offer.