United Spirits Files Plea In Karnataka High Court In UB Loan Case
The company does not expect financial implications due to the matter.
United Spirits Ltd. has filed an appeal before Karnataka High Court on a judgement passed regarding a Rs 1,337 crore loan issued by the company to United Breweries, as per an exchange filing on Wednesday.
USL had entered into a loan agreement of Rs 1,337 crore with United Breweries Ltd. on July 3, 2013. The latter failed to pay 9.4% interest in 2015, post which, the company recalled the entire loan with interest and subsequently invoked arbitration proceedings.
The ld. Arbitral Tribunal passed a judgement rejecting USL’s claim as being premature. USL challenged the judgement before the Commercial Court, Bengaluru on March 3. The court upheld the tribunal's decision.
Apart from the quantum of claim that is due to be received by USL, the company does not have any expected financial implications, according to the exchange filing.
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United Spirits Share Price Today
The scrip rose as much as 1.04% to Rs 1,562 apiece. It pared gains to trade 0.78% higher at Rs 1,558 apiece, as of 11 a.m. This compares to a 0.05% advance in the NSE Nifty 50.
The share price has fallen 3.96% on a year-to-date basis, and risen 32.98% in the last 12 months. Total traded volume so far in the day stood at 0.10 times its 30-day average. Relative strength index was at 60.30.
Out of 25 analysts tracking the company, 16 maintain a 'buy' rating, four recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 0.5%.
