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The stock of Kingfisher will react to the licence cancellation by the Director-General of Civil Aviation. But the decision is likely to affect other UB Group stocks such as United Spirits, United Breweries, UB Holdings, and Mangalore Chemicals and Fertilizers. Most of these stocks have been on the rise in the last few months on hopes that promoter Vijay Mallya will be able to steer Kingfisher Airlines through the storm. Now all eyes are on Diageo, which is in talks with United Spirits to buy a stake in the company. United Breweries Holdings has a “significant financial exposure to KFA in the form of investments in equity, loans and advances and guarantees. Since UB Holdings is the holding firm of United Breweries, United Spirits, McDowell Holdings, Mangalore Chemicals and Fertilisers and UB Engineering, these stocks will also see come under pressure.
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