United Breweries shares: UBL share price jumped over 6 per cent in intraday trade on the BSE on Monday, January 20, after the company announced it would resume the supply of its beer to Telangana Beverages Corporation Limited (TGBCL) with immediate effect. UBL share price opened at ₹1,959 against its previous close of ₹1,951.50 and jumped 6.2 per cent to the level of ₹2,072. Around 12:30 PM, the stock traded 4.64 per cent up at ₹2,042.
United Breweries resumes beer supply to TGBCL
In an exchange filing during market hours on Monday, January 20, United Breweries said the company had decided to resume the supply of its beer to TGBCL immediately.
“We wish to inform you that the Company has decided to resume the supply of its beer to Telangana Beverages Corporation Limited (TGBCL) with immediate effect. We have been in talks with TGBCL, and these have been constructive discussions. TGBCL has assured us it will address our issues with pricing and outstanding payments in a timely manner,” the company said.
“Until we get more information basis assurances, we have decided to restart our supplies to TGBCL for the time being. This is an interim decision in the interest of consumers, workers and stakeholders,” the company added.
TGBCL is a government-run organisation with exclusive control over the sale of alcohol in the state’s retail and wholesale sectors. It buys alcohol from suppliers and resells it to retailers through its depots. TGBCL was formed in 2014 following its separation from the Andhra Pradesh Beverages Corporation Ltd.
On January 8 this year, UBL, the maker of popular brands like Kingfisher, announced the immediate suspension of beer supplies to TGBCL due to significant and ongoing operating losses in the state.
The company stated that despite two years of efforts to address the issue, there has been no increase in the base prices of their products, leading to escalating losses that have rendered their operations in Telangana unviable.
UBL share price trend
Till the previous session’s close, UBL shares have seen a moderate gain of about 7 per cent over the last year.
The stock hit its 52-week high of ₹2,202.90 on September 27 last year after hitting its 52-week low of ₹1,645.80 on February 28.
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