Shares of UB group of companies on Tuesday surged as much as 6.6 per cent led by United Spirits on hopes that the company will clinch a deal to sell a stake to UK-based Diageo Plc.
Shares of United Spirits settled 6.67 per cent higher at Rs 1,260.70 apiece on the BSE.
“The stock rose on the back of routine speculative buzz of stake sell to Diageo. The speculation is keeping the stocks alive,” CNI Research CMD Kishore Ostwal said.
According to a joint statement of United Spirits and Diageo issued last month, USL and Diageo had confirmed that Diageo was in discussion with United Spirits and United Breweries Holdings in respect of possible transactions to acquire an interest in the company. However, there is no certainty that these discussions will lead to a transaction, it had said.
Buying was also seen in other UB group stocks. United Breweries closed with a gain of 3.87 per cent, United Breweries Holdings rose by 1.71 per cent, UB Engineering (3.83 per cent), McDowell Holdings (2.46 per cent) and Mangalore Chemicals & Fertilizers (1.40 per cent).
Kingfisher Airlines, however, fell for the seventh day in a row today plunging by nearly 5 per cent to hit the lower circuit limit on bourses.