Mumbai: Shares of UB group firms today tanked up to 5 percent after the Bombay High Court refused to restrain banks from selling shares of United Spirits pledged as security against loans to Kingfisher Airlines.
Stocks of group holding firm UBHL (United Breweries Holdings Ltd) slipped 4.9 percent to Rs 41.65, while United Spirits Ltd fell by 3.16 percent to Rs 1,801 on the BSE.
Shares of United Breweries lost 1.50 percent, while Kingfisher Airlines was down 2.76 percent.
In a setback for liquor baron Vijay Mallya, the Bombay High Court had yesterday refused to restrain banks from selling shares of United Spirits pledged as security against loans to Kingfisher.
The court order would mean that the consortium of 17 banks would be free to sell shares of the subsidiary companies of the UB Group which had been pledged with the lenders under an agreement in 2010.
While the consortium leader SBI has an exposure of Rs 1,800 crore to Kingfisher, Punjab National Bank's exposure stands at Rs 800 crore.
Other major lenders include IDBI Bank (Rs 800 crore), BoI (Rs 650 crore), Bank of Baroda (Rs 550 crore), United Bank of India (Rs 430 crore), Central Bank of India (Rs 410 crore), UCO Bank (Rs 320 crore), Corporation Bank (Rs 310 crore), State Bank of Mysore (Rs 150 crore), Indian Overseas Bank (Rs 140 crore), Federal Bank (Rs 90 crore), Punjab and Sind Bank (Rs 60 crore) and Axis Bank Ltd (Rs 50 crore).
The lenders hold 3.5 crore shares of USL as collateral. More than 90 per cent of promoters stake are pledged with various banks.
First Published: Wednesday, April 03, 2013, 13:27