“UBL had cash and cash equivalents of ₹470 crore at the end of FY21. As per our current forecasts, it may have the net cash to pay the penalty of ₹752 crore by end of FY22, or else it may have to raise debt,” Motilal Oswal said in an investor report. The brokerage firm maintained a ‘sell’ rating on UBL’s stock with a 27% downside.
UBL, in a stock exchange notice, said it is reviewing the order in consultation with its legal advisers. Executives of the three beer companies, which control over 90% of the market, exchanged sensitive information and colluded to fix beer prices since 2005, CCI said in its order.
“With still stressed beer sales, UBL would have to shore up further debt. The scenario, if undertaken, is expected to create near and medium term challenges said ICICI Securities.
The above news was originally posted on economictimes.indiatimes.com