USL shares rise as Diageo ‘considers’ upping stake

United Spirits (USL) shares rose almost 4% on the BSE India stock exchange yesterday as reports suggest Diageo is seeking to increase its stake in the Indian spirits producer to 72%.

Diageo is considering various options, including open market transactions to increase its stake in McDowell’s whisky maker USL from its current 55% to 72%, reports the Business Standard.

The UK-based drinks group gained complete control of the USL board following the departure of Vijay Mallya from his role as chairman and non-executive director in February.

In a statement to the BSE, United Spirits company secretary V Ramachandran said: “We wish to clarify that we are not aware of any such talks and hence unable to comment on the same.”

The Spirits Business has approached Diageo for comment.