Mallya to raise funds via treasury stock sale: Sources

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Mallya to raise funds via treasury stock sale: Sources

Vijay Mallya is looking to raise funds via sale of treasury stock, reports CNBC-TV18's Nimesh Shah, quoting sources.

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Vijay Mallya is looking to raise funds via sale of treasury stock, reports CNBC-TV18's Nimesh Shah, quoting sources.

Also see: USL to be deleveraged in two weeks: Vijay Mallya

Here is a verbatim transcript of Nimesh Shah's comments on CNBC-TV18. Also see the accompanying video.

We reported about the possible delevargaing of the balance sheet of United Spirits one week back saying that over the period of 2-3 weeks they will initiate this process. What we understand from sources is to begin with 5% of the treasury stock is in the block via the open market deal. The company is looking at raising close to USD 150-200 million via this block deal. This block deal we understand from sources is likely to executed over the next 48 hours from now. So, clearly the first 5% is on the block, this is a treasury block we understand,

This is just the beginning because United Spirits is sitting on a debt close to Rs 8,000 crore and will have to deleverage the balance sheet going forward. But this is the first step. We understand and the block is going to get executed over next 48 hours from now and this money is essentially getting raised to repay part of the debt for United Spirits.

Shaw Wallace which holds 10% stake in United Spirits as of March end is going to sell at least 5% via block deal over the next 48 hours. So, this is just the beginning and there is more coming for United Spirits.