United Spirits shares gain as it fully acquires NAO Spirits in Rs 130 crore deal

United Spirits to fully acquire NAO Spirits, deepening bet on Indian craft gin

Shares of United Spirits were marginally higher to Rs 1,469 per share on June 20 following the company's announcement that it will acquire full ownership of NAO Spirits & Beverages—the producer of premium Indian craft gin labels, Greater Than and Hapusa—at an enterprise value of Rs 130 crore.

So far this year, this liquor stock has declined 11 percent, as against 4 percent rise in the benchmark Nifty 50 index.

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The board of United Spirits has approved the purchase of 37,683 equity shares from NAO Spirits’ existing shareholders in two tranches for a total consideration of Rs 53.8 crore. In addition, the company will subscribe to 31,820 fresh equity shares and 27,577 compulsorily convertible preference shares (CCPS) for Rs 56 crore.

These transactions, expected to be completed by June 27, 2025, will raise United Spirits’ stake in NAO Spirits from the current 30 percent to 97.07 percent, effectively making it a subsidiary. The remaining 3 percent stake will be acquired by June 2026, finalising the complete buyout.

NAO Spirits, which operates in the niche craft alcoholic beverage space, reported a net turnover of Rs 34.83 crore in financial year 2024, along with a net worth of Rs 18.21 crore. The brand has a presence in both domestic and international markets.

To support future operations and scale-up plans, United Spirits will also provide an additional investment of up to Rs 20 crore, earmarked for working capital needs and business expansion.

Commenting on the development, Praveen Someshwar, Managing Director and Chief Executive Officer of Diageo India, said, “The acquisition of NAO Spirits, a promising portfolio company within our Ventures arm, represents a pivotal step in exploring future growth opportunities in Indian craft spirits.”

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