Stocks

ED transfers UB shares worth ₹5,615 crore to DRT account

Our Bureau Mumbai | Updated on June 07, 2021

Represents 15.63% of Mallya-promoted co

Directorate of Enforcement (ED), Mumbai, has transferred shares worth 15.63 per cent stake in United Breweries to the demat account of the recovery officer of the Debt Recovery Tribunal. Based on the current trading price of United Breweries at ₹1,359.10 a share on BSE, the equity shares are worth ₹5,615 crore.

Earlier in March 2019, the Debt Recovery Tribunal had transferred a 2.80 per cent stake worth over ₹1,025 crore held by Mallya in the company.

Ex-promoters’ stake

“We have noticed that the Deputy Director, Directorate of Enforcement (ED), Mumbai, has transferred 4.13 crore shares constituting 15.63 per cent of the equity share capital of the company (out of 4.27 crore shares constituting 16.15 per cent) to the demat account of Recovery Officer I DRT-II. Earlier, these equity shares were held by certain of our Promoter group Companies,” the company said in a statement.

“Earlier by our letter dated May 8, 2018, and March 11, 2019, we had intimated the exchanges about Transfer of certain equity shares of the company held by a few Promoter group Companies, to the account of ED and DRT-II,” it added.

This comes even as a consortium of banks led by State Bank of India (SBI) has initiated a process to sell real estate assets owned by Vijay Mallya to recover dues of over ₹5,600 crore. This comes after the Prevention of Money Laundering Act (PMLA) court rejected claims made by the Enforcement Directorate on the assets it had seized.

Mallya’s assets include several floors of the UB City commercial tower in Bengaluru’s central business district, under-construction properties in Kingfisher Tower in Bengaluru worth over ₹564 crore, and shares in United Breweries and United Spirits that Mallya had controlled are estimated to be valued at over ₹5,000 crore.

Published on June 07, 2021

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