United Spirits raises Rs 1,615 cr via QIP | business | Hindustan Times
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United Spirits raises Rs 1,615 cr via QIP

business Updated: Oct 21, 2009 21:45 IST
HT Correspondent
HT Correspondent
Hindustan Times
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United Spirits, the country’s largest liquor maker, raised Rs 1,615.6 crore through qualified institutional placements (QIPs) to primarily repay the debt it incurred in acquisition of Scottish whiskey maker Whyte & Mackay.

A part of the fund would also be used for capital expenditure, the company release said.

The company divested 16.4 per cent or 1.76 crore shares from the existing share capital at Rs 913.7 per share, for private placement to institutions.

UB Group Vijay Mallya said in a statement, “The fact that United Spirits is the pick of the Indian FMCG sector is manifested ... in the over-subscription that the issue received in difficult market conditions.”

The issuance of additional shares would take the current share capital to 12.5 crore shares on a fully diluted basis. The issue was launched on October 14 at a discount of 0.9 per cent. It closed on October 20.

Shares of United Spirits ended Wednesday at 2.29 per cent lower on Bombay Stock Exchange, or at loss of Rs 23.95 per share at Rs 1,019.75 from its pervious close of Rs 1,043.7 per share.