UB rises 5% after Mallya moves court against lenders

Vijay Mallaya's United Breweries Holdings, promoter of Kingfisher Airline, has dragged SBI (State Bank of India) and other lenders to court to prevent the sale of shares of United Spirits (USL) in the market held by them. The UB stock reacted to the news by rising 4.91% in the morning trade. However, United Spirits fell 2 percent and was trading at Rs 1,854.15. Reports suggest that a petition filed in the Bombay High Court by UB Group will come up for hearing today (Tuesday).

A CNBC-TV18 report says that SBI has already sold shares in two lots at the current market price and is likely to continue selling these shares despite the case being heard in the Bombay High Court. Shares of State Bank of India was quoting at Rs 2,085.05, down Rs 5.55, or 0.27%. The consortium of lenders is also likely to send an official loan recall notice in the next few days as part of the asset recovery proceedings.