United Spirits will seek shareholders’ approval later this month over its plans to report to BIFR, the tribunal for sick companies, following erosion of more than half of the company’s peak networth.
In a regulatory filing to the NSE, the company whose brands include Signature, Bagpiper, Antiquity and Royal Challenge, said the company would seek shareholders’ nod during the extraordinary general meeting on November 28.
The company plans to report to the Board for Industrial and Financial Reconstruction (BIFR) as its accumulated losses as on March 31, 2014 have resulted in an erosion of more than fifty per cent of its peak net worth during the immediately preceding four financial years, it added.
Last month, the company’s board had approved reporting of erosion of more than half of its peak networth to BIFR.
The spirits maker had registered a string of losses for the last four years. The company is now controlled by world’s largest spirits maker Diageo, which had acquired an additional 26 per cent shares in USL for Rs 11,448.91 crore in July with an aim to take its total stake in the Indian firm to 54.78 per cent.
Last month, liquor baron Vijay Mallya was re-elected as non-executive director and chairman of United Spirits.