United Spirits has announced the sale of a residential property in Mumbai's prestigious Malabar Hill for Rs. 172 crore. The transaction, which was approved by the company's board, was conducted at arm's length and was not part of any related party deal. According to the stock exchange filing, buyers Ajaykumar and Manisha Vaghani will bear all applicable taxes and fees associated with the transaction.
The property includes furniture, fixtures, and fittings, and spans a ground floor along with two upper floors. United Spirits clarified that the agreement does not provide the buyers with any special rights, including the right to become directors on the company's board, or pre-emptive rights to share subscriptions or restrictions on changes to the company's capital structure.
This move is part of United Spirits' ongoing efforts to streamline its operations, as Diageo India continues to consolidate subsidiaries and liquidate non-core assets previously owned by the former USL promoter, Vijay Mallya. In a similar vein, three years ago, the company sold 32 brands to Inbrew for Rs. 828 crore under a five-year franchise arrangement.
Diageo acquired a stake in USL in 2013 and eventually took a majority stake by the following year. Mallya stepped down from the company in 2015 and left India in 2016 amidst financial difficulties.