Shares of United Breweries Limited (UBL) fell 3.10% on January 8, closing at ₹2,011.05 after the company announced its decision to suspend the supply of beer to Telangana Beverages Corporation Limited (TGBCL). The decision was driven by two key issues:
- TGBCL has not revised the basic price of UBL’s beer since FY 2019-20, leading to significant financial losses for the company in Telangana.
- TGBCL has accumulated substantial unpaid dues for previous beer supplies, impacting UBL’s operational viability.
UBL stated that the current pricing structure and unpaid dues made continued supplies to TGBCL economically unfeasible.
Key Stock Data:
- Previous Close: ₹2,075.35
- Day’s Range: ₹1,987.15 – ₹2,084.25
- Market Cap: ₹533.42 billion
The announcement was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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United Breweries