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Journalism of Courage
MUMBAI, June 28: United Breweries Ltd, belonging to the UB group of Vijay Mallya, has hiked its equity stake in McDowell amp; Company Ltd from 41 per cent to 50 per cent.
It has received the central government8217;s approval under Section 372 of the Companies Act for increasing its stake in McDowell amp; Company Ltd, by exercising the warrants option.
United Breweries Ltd will now convert 6.9 million warrants at the exercise price of Rs 55 per share ie a face value of Rs 10 plus a premium of Rs 45 per share. The share capital of McDowell will go up from its existing level of 44,872,487 shares to 51,772,487 shares, thus enhancing the promoter group8217;s shareholding by nine per cent.
The total outgo from United Breweries Ltd will be Rs 37.95 crore of which Rs 6.90 crore will be towards the share capital and the balance towards the premium.
UB Ltd has from time to time been advancing sum of monies to McDowell, and the consideration for the issue of these new shares will be by debit to this advance account. The injection of funds by UB is expected to help McDowell to tide over from the crisis generated by liquor ban in several states.
