Shares of United Spirits surged over 3% on June 10, touching a five-month high, following media speculation that parent company Diageo was exploring a stake sale in IPL franchise Royal Challengers Bengaluru (RCB). However, the rally was brief, as United Spirits quickly dismissed the reports in a regulatory filing with the BSE, calling them “speculative” and confirming it was not engaged in any such discussions.
The market chatter suggested Diageo was considering selling part or all of its stake in RCB, aiming for a valuation of up to ₹17,000 crore. RCB, a popular IPL team originally owned by Vijay Mallya, came under Diageo’s control after it acquired Mallya’s spirits business. The buzz gained more attention after RCB clinched their maiden IPL title this season, defeating Punjab Kings in a thrilling final.
Despite the company’s denial, the stock still benefited from overall sentiment, further fueled by strong Q4 FY25 earnings. United Spirits reported a 74.7% year-on-year rise in net profit to ₹421 crore, with revenue growing 8.9% to ₹3,031 crore and EBITDA improving 37.7% to ₹460 crore. Operating margins expanded to 15.2%, up from 12% the previous year. The board also recommended a final dividend of ₹8 per share for FY25.