Stocks

Liquor makers fall after Bihar announces plan to ban alcohol

Reuters | Updated on January 22, 2018 Published on November 26, 2015

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Stocks of liquor makers fell after Bihar today said that the State will go dry from April 1.

United Spirits fell 4.72 per cent or Rs 159.05 to Rs 3,212.15. United Breweries was trading flat at Rs 935.05 after slipping to Rs 927.20 intra-day. Radico Khaitan slumped 7.13 per cent or Rs 8.75 to Rs 114 in pre-close session.

Bihar Chief Minister Nitish Kumar today said that sale of alcohol will be banned from April 1.

Investors speculate more States may follow Bihar's move.

Consumption of alcohol is already prohibited in Gujarat, Kerala, Manipur, and Nagaland.

The final modalities are still to be worked out, Ajay Alok, a spokesman for Janta Dal (United), told news channel CNBC TV 18.

The move can cost Bihar Rs 3,400 crore in tax revenue, the spokesman added.

Bihar's newly elected chief minister Nitish Kumar had earlier promised voters to restrict opening of liquor shops in villages.

United Spirits has a plant at Hathidah in Bihar, according to its annual report.

The report comes at a time when India is now a hotly contested market for global drinks makers like Diageo and Pernod Ricard.

Published on November 26, 2015
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