Radico Khaitan has been hitting the lower circuit since 11^th April and today too, the moment is opened for trade at Rs.116.50, it was locked at the 5% lower circuit.

The stock has turned bearish on unconfirmed news reports that Japanese brewer and distiller Suntory Holdings is most likely to call off the deal with the company. This deal breaker is said to have happened post conducting the due diligence. Suntory was to pick up a 26% stake at around Rs.900 crore and this would have helped Radico hugely to cut down its huge debt pile of Rs.750 crore. In fact this calling off at this juncture comes as a shock for the company and its shareholders as Radico, to facilitate Suntory’s entry into the company, had already initiated the process of hiving off its IMFL business into a separate subsidiary.

Radico whose IMFL liquor contributes 70% to its total revenue, owns well known brands like 8PM whisky and Magic Moments Vodka.