UB Group shares rally on stake sale in Force India

Shares of Vijay Mallya-led UB Group companies such as United Breweries, Kingfisher Airlines, United Breweries Holdings and McDowell Holdings rallied by up to 10 per cent on the BSE on Thursday after the group agreed to sell a 42.5 per cent stake in its Formula One team to Sahara Group.

Shares of United Breweries Holdings surged by 6.43 per cent to a high of Rs 114.90 on the BSE. Similarly, the group's spirits business arm, United Breweries, also rose by 3.42 per cent, while aviation entity Kingfisher Airlines spurted by 10 per cent and McDowell Holdings gained 3 per cent in morning trade on the BSE.

All these stocks recorded gains of up to 9 per cent in the previous trading session.

Force India got a huge fillip on Wednesday after Sahara Group agreed to pump in $100 million for the development of the Formula One team, which has been re-christened as Sahara Force India.

As per the agreement signed on Wednesday between Sahara Group and Vijay Mallya, Sahara Group will be issued fresh shares of Watson Limited, which owns the team.

Both Mallya and Sahara Group, headed by Subroto Sahara, will own 42.5 per cent equity each in the team and the remaining 15 per cent will be with the Michiel Mol family.