Shares of United Spirits Ltd rose nearly 2% on Tuesday, reaching a five-month high, after reports surfaced that parent company Diageo is exploring a stake sale in Royal Challengers Bangalore (RCB), the popular Indian Premier League (IPL) franchise.
United Spirits’ stock touched an intraday high of ₹1,081.50 on the BSE, marking its highest level since early January 2025. The bullish sentiment was fueled by speculation that Diageo could unlock significant value from its investment in RCB, a high-profile sports asset.
Diageo Mulls Strategic Options for RCB
According to media reports, Diageo — the UK-based global spirits giant and majority stakeholder in United Spirits — is in preliminary discussions with potential investors to offload part or full stake in RCB. The move is part of Diageo’s broader portfolio review to focus on core business operations and improve capital efficiency.
Diageo had acquired the RCB franchise through its control of United Spirits, and the brand has grown into one of the most recognized teams in the IPL, attracting significant sponsorship and media interest over the years.
Market Reaction
Analysts believe a potential stake sale could improve the balance sheet and allow United Spirits or Diageo to reallocate capital towards their primary beverage business, which may lead to long-term shareholder value creation.
“With RCB’s brand equity at an all-time high and IPL valuations soaring, monetizing this asset could deliver a substantial cash inflow. This would support strategic investments or shareholder returns,” said a Mumbai-based equity analyst.
United Spirits Stock Performance
- Day’s High: ₹1,081.50
- Previous Close: ₹1,060.45
- Current Price (11:30 AM IST): ₹1,081.00 (+1.94%)
- YTD Gain: ~15%
Outlook
The stock has witnessed renewed investor interest following recent improvements in quarterly results and margin stability. A potential RCB stake monetization adds to the positive narrative.
Investors will now closely watch for any official confirmation or announcement from Diageo or United Spirits regarding the RCB deal.
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