Shares of United Breweries Limited (UBL) surged 5.94% to ₹2,067.20 as of 11:15 AM, following the company’s announcement to restart beer supplies to Telangana Beverages Corporation Limited (TGBCL). The decision comes after constructive discussions with TGBCL, which assured time-bound resolutions to pricing and outstanding payment issues.
Stock Performance (as of 11:15 AM):
- Opening Price: ₹1,959.80
- Day’s High: ₹2,075.00
- Previous Close: ₹1,951.30
- Volume: 3,16,962 shares
Key Announcement:
In a filing, UBL disclosed its decision to resume supplies to TGBCL temporarily, considering stakeholder interests. The discussions with TGBCL included assurances of resolving concerns over payments and pricing. The company stated that this move is an interim decision, and it will continue to engage with TGBCL.
Market Reaction:
The market reacted positively to the announcement, reflecting optimism about improved cash flow and recovery in the Telangana market, a significant region for UBL’s operations.
Conclusion:
Investors remain upbeat about UBL’s strategic decision to prioritize consumer and stakeholder interests. Market participants will closely watch for updates on the resolution of pending issues.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making investment decisions.
