Shares of beverage stocks soared in the range of 6% to 14% on Friday, as investors cheered Patna High Court decision to quash Bihar government’s liquor ban policy and termed the prohibition unlawful and illegal.
Empee Distilleries led the pack of alcohol stocks with a gain of 14%, followed by Pioneer Distilleries, up 9.8%. United Spirits, the biggest beverage company by market value climbed nearly 7%. The market capitalisation of United Spirits rose by R2,259 crore. Friday’s gain was the biggest single day gain for both Empee Distilleries and United Spirits since May 2016.
The High Court ruling came five months after Nitish Kumar government’s decision to impose a total ban on alcohol in towns and cities. Counters at Empee Distilleries and Tilaknagar Industries saw surge in volume as shares of both the companies were traded six times more than their average three month volume. While over 26 lakh shares of Tilaknagar Industries changed hands on both BSE & NSE, Empee Distilleries saw trading of 9.9 lakh shares.