Shares of breweries and distilleries companies rose upto 13% after the Supreme Court verdict on giving its nod to Chandigarh administration’s notification denotifying some highways to allow continued sale of liquor from vends within 500 metres of the roads.
Shares of breweries and distilleries companies rose upto 13% after the Supreme Court verdict on giving its nod to Chandigarh administration’s notification denotifying some highways to allow continued sale of liquor from vends within 500 metres of the roads. The shares Tilaknagar Industries surged 13.26% to close at Rs 14.25 while the alcoholic sector leaders in India by asset size, United Spirits and United Breweries ended up 1.18% to Rs 2,669 and 2.43% to Rs 820.35 respectively.
Other liquor stocks which gained during the day includes Globus Spirits (up 4.84% at Rs 78), Khoday India (up 4.99% at Rs 70.45), Ravi Kumar Distilleries (up 3.45% at Rs 10.19), Chambal Brewery (up 4.91% at Rs 8.55), Pioneer Distilleries (up 2.84% at Rs 216.9), IFB Agro (up 1.15 at Rs 435.65), Som Distilleries (up 0.81% at Rs 136.5), GM Breweries (up 1.75% at Rs 477), Associated Alcohol and Breweries (up 1.12% at Rs 163), Radico Khaitan (up 1.8% at Rs 136), Pincon Spirit (up 0.98% at Rs 72.15).
The latest ruling of apex court’s refusal to set aside the notification may also lead other states to denotify highways criss-crossing the cities to allow liquor vends to continue operating. “The notification by the Chandigarh administration said that road will be denotified within the limit of the city and it does not say that the liquor vends will be regularised,” it said.
The apex court also dismissed other interlocutory applications (IAs) of various individuals, hotels, clubs and companies and liquor vendors’ associations seeking relief from the earlier order of the apex court saying these are not maintainable.
The pressure on liquor stocks is into effect after the Supreme Court in its 15 December 2016 judgement had banned the sale of liquor within 500 meters from the edge of the national and state highways which came into effect from 2 April this year. However, later today, Supreme Court exempted Arunachal Pradesh and Andaman and the Nicobar Islands from the 500-metre cap on liquor vends along highways.