The British distiller said that it is not engaged in any discussions regarding a stake sale in RCB.
“The company would like to clarify that media reports are speculative in nature and it is not pursuing any such discussions,” United Spirits said in a stock exchange filing.
According to a Bloomberg report, United Spirits had been in talks with potential advisers as it explored options, including a partial or complete sale of the franchise. Diageo owns the IPL team through its Indian subsidiary, United Spirits Ltd., and may seek a valuation of up to $2 billion, the report said.
The report also said that no final decision had been made and the company could choose not to proceed with a sale.
Abneesh Roy of Nuvama Institutional Equities has a ‘Buy’ rating on United Spirits with a target price of ₹1,885. He said that if the reported event materialises, it would be a positive for the stock. “Based on our analysis, around ₹146 of the total ₹1,885 target price is attributed to the IPL team,” he said.
Roy added, “Since RCB won the IPL, a premium valuation rub-off could also be expected, should a deal go through.”
From a business standpoint, he remains optimistic. “There are multiple positives for the stock. In UP, the number of retail outlets has gone up. In Andhra Pradesh, the industry is benefiting as the market has opened up. Karnataka has seen a reduction in taxes on premium whiskey.”
Further, Roy pointed to longer-term catalysts. “By FY27, the UK FTA is expected to bring benefits, not just higher volumes in the premium and luxury segments, but also margin improvement as Scotch input costs come down.”
While there is some urban slowdown, United Spirits reported 9.2% volume growth in the P&A segment in Q4. “With food inflation easing and likely interest rate cuts, FY26 also looks promising, with expectations of high single-digit volume growth. Overall, we remain positive on the stock.”
Shares of United Spirits were trading with gains of as much as 3% to hit an intraday high of ₹1,644 following the report of a potential deal.
