Heineken International, the Dutch multinational brewing company has acquired an additional 14.99 percent stake in United Breweries Limited (UBL) via a block deal. This comes a day after the UBL sought exemption from the Securities and Exchange Board of India (SEBI) to buy an additional stake in the Bangalore-based company.
These shares were in the possession of the Debt Recovery Tribunal since they were a part of the Kingfisher Airlines deal as collateral to banks. Now, the money from the sale of these shares will be passed on to banks.
According to Nomura, Kingfisher owed nearly Rs 7,000 crore to the banking sector. The lenders that had classified Kingfisher Airlines as a non-performing asset (NPA) will benefit from this resolution.
The banks with the highest exposure in absolute value are the State Bank of India (SBI). SBI had an exposure of over Rs 2,000 crore, followed by Punjab National Bank (PNB) with Rs 1,230 crore, and IDBI Bank that had Rs 890 crore.
However, banks that will benefit the most as a percentage of gross NPA are UCO Bank, IDBI Bank, Federal Bank. These three banks will see gross NPA improve anywhere between 2.5-3 percent level.For more details, watch the video.