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Shares of United Breweries Ltd fell as much as 3 per cent on Friday, a day after Reuters reported the brewer and two of its global rivals, had been raided in India as part of an ongoing investigation into price-fixing allegations.
On Thursday, the Competition Commission of India conducted search and seizure operations at the offices of United Breweries (UB), Denmark's Carlsberg and the world's largest brewer Anheuser-Busch InBev (AB InBev) in at least two cities. The United Breweries stock was down 1.13 per cent at in a market that was up nearly 2 per cent on Friday.
UB shares opened at Rs 1,170 against Thursday’s close of Rs 1,189.65 on the BSE. The stock traded between Rs 1,199.95 and Rs 1,152 in morning trade. At about 11.45 am, the stock was quoting at Rs 1,181, down Rs 8.65 or 0.73 per cent.
Investors and analysts said shares in UB, which is known for its Kingfisher brand, were hit by fears that the CCI raids could result in penalties and potentially dent profits down the road.
“This is a highly regulated market and these are global players. So, allegations of price-fixing are extremely worrying for us,” said the head of a fund that owns shares in UB, who asked not to be named due to company policies.
The company did not respond to requests for comment.
More than 570,800 shares changed hands, compared with their 30-day moving average of 796,500 shares. Up to last close, the stock had risen 10.1 per cent this year.
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