United Spirits to Acquire NAO Spirits for Rs 130 Crore; Stock Ends Flat
Shares of United Spirits Ltd ended flat after touching a day’s high of Rs 1,467.50 on 20th June, after the company announced yesterday that it would acquire full ownership of NAO Spirits & Beverages Private Limited — the maker of premium Indian craft gin brands, Greater Than and Hapusa — at an enterprise value of Rs 130 crore (approximately $15.2 million).
United Spirits Ltd (USL) will acquire 37,683 equity shares of NAO Spirits from existing shareholders for Rs 53.8 crore. USL will also subscribe to 31,820 equity shares and 27,577 preference shares for Rs 56 crore. The deal will be completed in two tranches.
These transactions are expected to close by 27th June 2025. This will increase USL’s stake from 30% to 97.07%, effectively making NAO a subsidiary. The remaining 3% will be acquired by June 2026, completing the full acquisition.
NAO Spirits, which makes premium craft gins Greater Than and Hapusa, reported a net turnover of Rs 34.83 crore in FY24. It has a net worth of Rs 18.21 crore and operates in the craft alcoholic beverages space. NAO Spirits sells in both domestic and international markets.
The acquisition will be funded through a mix of upfront and deferred cash payments. USL also plans to invest up to Rs 20 crore more to support NAO’s working capital and growth needs.
While the fresh equity and preference share subscription is considered a related party transaction (as NAO is currently an associate), the share purchase from existing shareholders is not. The deal is subject to standard closing conditions.
Praveen Someshwar, MD & CEO of Diageo India, said this move strengthens their portfolio of disruptive alco-bev startups. It aligns with changing consumer preferences. Someshwar calls it a key step in scaling up Indian craft spirits.
At 3:30 PM, the shares of United Spirits closed 0.48% lower at Rs 1,453.80 on NSE.
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