United Spirits fizzes up

United Spirits is the top gainer on the BSE currently, up 11% at Rs.2840 and this was after hitting a new 52-week high at Rs.2940.55.

The stock hit a new high as the much awaited open offer from Diageo finally came in – it plans to acquire upto 26% stake in United Spirits at Rs.3030/share, which was at a premium of 20% over Friday’s close. Diageo hopes to raise its stake through this open offer to 54.78% and it currently holds 29% stake. The open offer is scheduled to begin on 11^th June and close on 24^th June.

Our Editor, Mr.SP Tulsian is of the opinion that the open offer might not evoke full response , indicating bullish view on the stock over next 12 months, when it can move to Rs.3,500 levels.