United Spirits loses its fizz

United Spirits is down in the red today morning. From the Friday close of Rs.2670, the stock opened today at Rs.2515 and went down to Rs.2511. Though it has recovered from the day’s low point, it remains in the red at Rs.2611.

The stock is in the red after the Karnataka High Court annulled the stake sale of United Breweries Holdings in United Spirits to Diageo. The High court order has only cancelled the sale of share by UBHL to Diageo but has not declared the entire deal between UB group and Diageo void. Naturally, the UB group and Diageo will appeal against the order in the Supreme Court but in the short term, United Spirits could remain under a hangover of this order.