Mallya’s United Spirits sells 10 per cent stake to institutional buyers

T Rowe Price International Inc and Capital International Emerging Markets Fund were among investors who bought 10.3 per cent of United Spirits Ltd, India's biggest liquor producer and the third largest in the world, for a total Rs905 crore.

On Tuesday, the company had said it is looking at raising funds either through a private placement to institutions or to private equity firms to reduce its debt. However, it did not give details.

It now emerges that several funds, including Reliance and DWS Investments, bought over one crore shares in Vijay Mallya's flagship liquor company through an open market transaction.

T Rowe Price bought 499,070 shares for Rs880 apiece, filings with the Bombay and national stock exchanges yesterday show. Capital acquired 1.06 million shares, DWS Investment 1.03 million shares, Emerging Markets Growth Fund Inc 2.14 million shares, and Reliance Mutual Fund 570,000 shares.

The sale of the stake held by Shaw Wallace in USL leaves the promoter holding untouched at 40 per cent, as treasury stocks were sold earlier on Tuesday. Shaw Wallace sold off its entire stock of treasury shares of 10.28 million in United Spirits in various block deals, raising Rs905 crore.

In 2005, when UB acquired Shaw Wallace, as well as when it merged Shaw Wallace with USL last year, treasury stocks of around 17 million shares were created.