Liquor Stocks Rise On Report Of Andhra Pradesh Buying Spirits From Top Brands
Andhra Pradesh will reportedly resume procurement of liquor from top brands and will announce a new liquor policy soon.
Shares of alcohol companies jumped on Thursday as the CM Chandrababu Naidu-led Andhra Pradesh government will reportedly resume buying liquor from top brands, including Tilaknagar Industries Corp., United Breweries Ltd., United Spirits Ltd., Radico Khaitan Ltd. and Globus Spirits Ltd.
Shares of Tilaknagar Industries jumped the most, at 8.7%, to hit Rs 262 per share, its highest since June 24. United Spirits shares hit an all-time high, rising 4.86% to Rs 1,450 apiece. Radico Khaitan stock jumped nearly 3% and United Breweries stock was nearly 2% higher.
Andhra Pradesh will resume procurement of liquor from top brands and will announce a new liquor policy soon, Informist reported, citing sources. The state will replace local brands with popular companies and will buy liquor from United Spirits, Radico Khaitan and Globus Spirits, the report said.
In 2019, the state stopped buying liquor from top companies and brands under the YS Jaganmohan Reddy-led government, which announced a reduction in outlets to 2,934 from 4,380.
Recently, the Andhra Pradesh government ordered a CID inquiry into the excise policy during the tenure of the Yuvajana Sramika Rythu Congress Party. Naidu released a white paper on the subject in the Legislative Assembly on July 24, calling it "one of the biggest scams in Andhra Pradesh.".
