The Hindu Business Line : UB gets nod for rights issue

The board of directors of United Breweries has approved a proposal to raise funds not exceeding Rs 425 crore by way of issue of equity shares to the existing equity shareholders of the company on rights basis.

In a communication to the Bombay Stock Exchange, the company said the ratio and other terms of the rights’ issue will be decided by a committee of directors formed for this purpose.

Internal Accruals

According to a UB official, the company has earmarked about Rs 1,200 crore towards expansion and for adding new capacities.

The company plans to raise the amount through a rights’ issue, from internal accruals as well as through debt.

UB’s share in the domestic beer market is between 47 per cent and 48 per cent.

During the first quarter of this year, its brands registered a growth of between 16 per cent and 16.5 per cent compared with the industry growth of 15 per cent.

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