Shares of Vijay Mallya-owned United Breweries Wednesday surged over 3 percent, after the company said Heineken UK Ltd has acquired 3.21 percent stake in it.
Mumbai: Shares of Vijay Mallya-owned United Breweries Wednesday surged over 3 percent, after the company said Heineken UK Ltd has acquired 3.21 percent stake in it.
After soaring 6.32 percent to Rs 788 in intra-day trade, the stock finally ended at Rs 767.25, up 3.52 percent from its previous close on the BSE.
At NSE, the scrip settled 2.92 percent higher at Rs 764, in an overall strong stock market.
Tracking gains in the stock price, the market value of the company moved up by Rs 690 crore to Rs 20,286 crore.
United Breweries allotted over 84.89 lakh shares, representing 3.21 percent, to Heineken UK Ltd -- a shareholder of Scottish & Newcastle India Pvt Ltd (SNIPL), according to regulatory filing to the BSE.
The acquisition is pursuant to amalgamation of Scottish & Newcastle India with United Breweries, whereby SNIPL would cease to exist.
As per the scheme of amalgamation which came into effect from April 18, SNIPL ceased to hold 3.21 percent in United Breweries.
Specific financial details were not disclosed.
These shares were allotted on May 13 and based on that day's closing price of Rs 748.10 per share, the 3.21 percent stake would be worth about Rs 635 crore.
Heineken UK is part of global liquor maker Heineken.
In the stock market, the BSE benchmark Sensex ended at 20,212.96, up 490.67 points or 2.49 percent.