The Hindu Business Line : Shaw Wallace in high spirits

SHARES of Shaw Wallace have been climbing steadily for the last several sessions. Markets are abuzz with speculation that the UB group would be taking over the liquor business of the company.

Though the speculation has been on for a while, it has got stronger over the last week leading to the increased interest in the scrip.

On Wednesday, when the market closed down by nearly one per cent, the scrip of Shaw Wallace rose by nearly 10 per cent.

The scrip ended trade at Rs 202.35, up by Rs 17.05 from Tuesday's close of Rs 185.30. The scrip has appreciated by over 32 per cent since the beginning of the month. It was trading at Rs 140 on February 1.

However, shares of United Breweries Holdings fell today by over 2.15 per cent. The scrip closed at Rs 93.25, down from Tuesday's close of Rs 95.30. The scrip has fallen over 10 per cent in the last fortnight.

Analysts say that shareholders' perspective is positively attuned towards the UB acquisition.

The company has been looking for bidders to sell off the liquor business for sometime now. The board of Jumbo, the holding company of Shaw Wallace, had met in January this year to discuss the proposed sell-off. But there was no consensus on the final bidder. The Jumbo Group had mandated McKinsey Singapore to call for bids from interested parties for Shaw Wallace's liquor business.

In the meantime, Mr Manu Chabria's mother, Ms Ranibhai Rajaram Chhabria, sent a legal notice to the bidders of Shaw Wallace cautioning them against the deal. The notice states that any deal would be subject to her consent, media reports said.

As the sell off of Shaw Wallace's liquor business has been mired in one controversy after the other, retail investors have been looking for an exit. Speculation about UB closing the deal has given them an opportunity, say brokers.

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