Liquor makers United Spirits, United Breweries, Pincon Spirit, Globus Spirits, Radico Khaitan and Tilaknagar Industries shares rallied 4-12 percent intraday Friday after Patna High Court imposed a stay on Bihar's anti-liquor law.
Liquor makers United Spirits, United Breweries, Pincon Spirit, Globus Spirits, Radico Khaitan and Tilaknagar Industries shares rallied 4-12 percent intraday on Friday after Patna High Court imposed a stay on Bihar's anti-liquor law.
In a verdict on the liquor ban, the court said that the way liquor ban policy has been implemented is not acceptable.
The court was hearing a public interest litigation (PIL) challenging the Bihar government's decision to clamp total ban on sale and consumption of alcohol in the state.
The PIL was filed by an ex-serviceman AN Singh, a day after the Nitish Kumar ministry declared Bihar a total dry state. The petition stated that the decision violated human rights of a citizen about what to eat and drink.
This is a good news for Indian made foreign liquor makers like Globus Spirits, Radico Khaitan, Tilaknagar etc.
Bihar recently waved tax on export, bottling of Indian Made Foreign Liquor (IMFL) and beer.
One of its earlier report, Morgan Stanley had said Bihar contributed 5-6 percent of United Spirits' sales.
Globus Spirits has been in the process of commissioning green field facilities in East India.
"The one in Bihar is already commissioned, we had a bit of a setback due to the floods but we are in the process of re-commissioning that now. The other one at West Bengal too is in advanced stage and hopefully there will be some good news coming from there soon as well," Shekhar Swarup, executive director of Globus said in an interview to CNBC-TV18 on September 28.
Yesterday, the Left Democratic Front (LDF) government in Kerala said it planned to come out with a revised policy on liquor. Even it decided not to close liquor outlets on Gandhi Jayanti
The past administration in Kerala had banned buying and selling of liquor and had forced about 20 percent shops to pull down their shutters in the last 2 years.
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