Shares of India’s United Spirits Ltd and Hindustan Unilever Ltd (HUL) rise to record highs after key stakeholders in both completed their share offerings on Thursday.
HUL is up 1.2 per cent,having earlier hit a record Rs 632,after Unilever said it had acquired a little over two-thirds of the Indian unit,less than the total amount it had offered to buy in the voluntary tender offer.
United Spirits gains 2.1 per cent,after earlier hitting a record Rs 2,626,after global drinks firm Diageo said on Thursday it completed a share offering that failed to attract enough investors given the low offer price.
Still,hopes about their outlooks and for new attempts at buying shares from their key stakeholders are keeping both companies well bid,analysts say.
However,gains may be harder to sustain given high valuations. HUL is trading at 36.1 times of its expected fiscal 2014 earnings,while United Spirits is trading at 53.4 times,as per Thomson Reuters data.