United Spirits Limited on Monday approved to subscribe to 19.5lac Compulsory Convertible Preference Shares (CCPS) of Hip Bar Private Limited (Hip Bar), for a subscription price of Rs1.95cr. Accordingly, the revised shareholding of the Company (on a fully diluted basis) is expected to be 26%.
Hip Bar is a company building digital ecosystem servicing the beverage alcohol industry and its consumers. The company’s turnover and net worth for the financial year ended March 31, 2020 was Rs50lac and Rs688lac, respectively.
“It is believed that Hip Bar’s platform should provide growth opportunities for the United Spirit’s on-line and e-commerce route to market. The investment enables the company to participate in Hip Bar’s growth and further strengthen the company’s partnership with Hip Bar.
Indicative time period for completion of the acquisition is by September 30, 2020.
United Spirits Ltd is currently trading at Rs579.40 down by Rs11.5 or 1.95% from its previous closing of Rs590.90 on the BSE.
