Shares of United Spirits fell over 2 per cent in the early trade on Wednesday after the Diageo-owned company said it is seeking approval from its shareholders to report sick to BIFR as its accumulated losses as on March 31, touched 86 per cent
of peak net worth during the past four fiscal years.
At 9.54 am, United Spirits was trading 2.26 per cent down at Rs 2,915. The scrip opened at Rs 2952 and had touched a high and low of Rs 2952 and Rs 2898.35, respectively, in trade so far. Later, the scrip settled 2.08 per cent down at 2920.30.
So far, around 0.21 lakh shares of United Spirits exchanged hands on the BSE as compared with two-week average daily volume of 0.20 lakh shares.
As per the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), if the accumulated losses of a company, at the end of any financial year have resulted in erosion of 50 per cent or more of its peak net worth during the preceding four financial years, such firm is required to report to the Board for Industrial and Financial Reconstruction (BIFR).
In a notice to the shareholders for an EGM on January 22, United Spirits on Tuesday said, as per the audited annual accounts for the fiscal ended March 31, “the accumulated losses of the company as at March 31, 2015 is 86 per cent of its peak net worth during the four financial years preceding the financial year ended March 31, 2015”.
The promoters holding in United Spirits stood at 58.87 per cent while institutions and non-institutions held 28.59 per cent and 12.54 per cent respectively.
