UB group, the company held and owned by Vijay Mallya, today has a hit a rising trend and hiked by 10% post the announcement of Force Group selling its shares to Sahara Group. The deal is of selling 42.5% stake of the Formula 1 team to the Sahara group.
Sahara Group has had the long experience in the sports sector with the Indian Cricket tournaments. Post-acquisition the Sahara group shall be renamed as Sahara Force India.Force India is a group owned by Vijay Mallya of United Breweries Holdings, Kingfisher Airlines and McDowell Holdings.
The stock of UBHoldings shot up by 6.43% and touched the Rs. 114.9 mark on the BSE while that of the UB itself shot up by 3.42% and Kingfisher Airline, also owned by Vijay Mallya rose by almost 10%. McDowell Holdings also saw a small rise of 3%.Yesterday’s movement in stocks saw a 9% gain on the BSE following the announcement of the deal.As per the agreement between the two parties, fresh shares shall be issued to the Sahara Group by the Watson Group that actually owns the formula 1 team or the Force Group in India. The merged deal shall be henceforth known as the Sahara Force India.
‘Bell the Bull’ says that since the company shall be held by both Vijay Mallya and Subrata Sahara, with 42.5% stake of each, the entity is in good hands. However such rise in stocks of UB group is short lived and corrections are expected soon.