Mumbai: Shares of Vijay Mallya-led UB Group companies on Wednesday shot up to 20 percent amid reports that the group is looking to sell stake in United Spirits and spirits major Diageo is in the running to pick up the stake.
Reacting to the buzz, United Breweries Holdings soared 20 per cent to Rs 70.80, while Kingfisher Airlines surged 8.74 percent to Rs 14.17 on the BSE.
Among other group stocks, United Spirits gained 6.57 percent, United Breweries was up 9.67 percent, McDowell Holdings rose by 4.91 percent, Mangalore Chemicals and Fertilizers rallied 6.81 percent and UB Engineering Ltd climbed 14.35 percent.
Market analysts said that rumours about stake sale in United Spirits fuelled the rally in the entire group stocks.
According to reports Diageo, the world's leading spirits, wine and beer firm, is said to be in the running to pick up USL stake, as the UB Group is looking to sell stake in USL to repay debt.
The money being raised through the stake sale will be pumped in to Kingfisher to repay the debt, it said.
The airline has a debt of over Rs 7,000 crore.
Rally in these stocks sharply outperformed the sluggish broader market where the BSE benchmark Sensex was trading at 16,923.63, up 60.83 points.
At close today, shares of United Breweries Holdings surged 20 percent to hit an upper circuit limit of Rs 70.80 on the BSE.
Kingfisher Airlines was up 6.29 percent at Rs 13.85, while United Spirits gained 6.37 percent to Rs 677.40.
Among other group stocks, United Breweries settled 7.18 percent higher, while McDowell Holdings rose by 4.91 percent, Mangalore Chemicals and Fertilizers went up by 2.61 percent and UB Engineering Ltd climbed 16.92 percent.
The BSE benchmark Sensex finished the day 17.71 points up at 16,880.51.
PTI
First Published: Wednesday, June 13, 2012, 16:17