UB Group shares soar on stake sale in Force India

Mumbai: Shares of Vijay Mallya-led UB Group companies such as United Breweries, Kingfisher Airlines, United Breweries Holdings and McDowell Holdings rallied by up to 10 percent on the BSE today after the group agreed to sell a 42.5 percent stake in its Formula One team to Sahara Group.

Force India got a huge fillip yesterday. Reuters

Shares of United Breweries Holdings surged by 6.43 percent to a high of Rs 114.90 on the BSE. Similarly, the group's spirits business arm, United Breweries, also rose by 3.42 percent, while aviation entity Kingfisher Airlines spurted by 10 percent and McDowell Holdings gained 3 percent in morning trade on the BSE.

All these stocks recorded gains of up to 9 percent in the previous trading session.

Force India got a huge fillip yesterday after Sahara Group agreed to pump in $100 million for the development of the Formula One team, which has been re-christened as Sahara Force India.

As per the agreement signed yesterday between Sahara Group and Vijay Mallya, Sahara Group will be issued fresh shares of Watson Limited, which owns the team.

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Both Mallya and Sahara Group, headed by Subroto Bagchi, will own 42.5 percent equity each in the team and the remaining 15 percent will be with the Michiel Mol family.

PTI