United Spirits- the Stock of the day

Vijay Malllya led United Spirits (USL), the largest Indian liquor company; saw its shares wildly spurting on the bourses today.  

USL shares rose following the declaration of the deal-price of Rs. 1,440 at which Diageo-the UK based liquor major famous for its iconic liquor brand Johnnie walker - will buy 27.4 % stake in the USL.

As per the regulations, Diageo shall have to bring an open offer to buy 26 % shares from public shareholders. USL saw a stupendous rally of 34.7 % in its share price and at the end of the day USL share managed to close at Rs. 1832.95 on the National Stock Exchange.

Funds mobilized by the USL shall help the company to pare its piling debt while Diageo shall be benefited with the USL's distribution channel to promote its own brands.

 Rally in the USL cascaded into other liquor shares like Radico Khaitan, Global Spirits etc which also soared 5-6 % while anothe brewery stock GM Brewery soared 20 %.