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Alcohol stock falls 5% after its CEO resigns from the company

Leading alcohol company transitions leadership, with its CEO stepping down on March 31, 2025, and a new CEO-Designate appointed to ensure sustained growth and strategic premiumisation efforts.
Alcohol stock drops 5% following CEO resignation, triggering investor concerns about future leadership.
Alcohol stock drops 5% following CEO resignation, triggering investor concerns about future leadership.

Introduction:

Leading alcohol company announced the resignation of its Managing Director and CEO, effective March 31, 2025, and appointed a CEO-Designate to oversee a smooth leadership transition and drive continued strategic growth and premiumisation initiatives.

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Also Read: Ambani group stock hits 5% lower circuit after its net profit declines by 29% QoQ

Share price movement of United Spirits:

On January 14, 2025, United Spirits Limited opened at ₹1,464.45, down 1.24% from its previous close of ₹1,482.80. The stock reached a high of ₹1,465.00 (-1.20%) and a low of ₹1,405.60. By 2:26 PM, it traded at ₹1,412.20, a 4.76% decline, with a market cap of ₹1,02,716.49 crore.

United Spirits Announces Leadership Transition:

United Spirits Limited announced on January 13, 2025, that Ms. Hina Nagarajan will step down as Managing Director and CEO on March 31, 2025. She will assume a new role within the Diageo group after her tenure.

The company named Mr. Praveen Someshwar as CEO-Designate, effective March 1, 2025. He will collaborate with Ms. Nagarajan during the transition and take over as MD and CEO on April 1, 2025, subject to necessary approvals.

During her tenure, Ms. Nagarajan drove strong growth and premiumisation strategies, increasing the company’s market capitalisation to over ₹1 trillion. The Board expressed gratitude for her contributions and confidence in Mr. Someshwar’s leadership to sustain progress.

Recent news on United Spirits:

As of January 08, 2024, United Spirits Limited received a ₹1.134 crore GST demand order from Kerala authorities for establishment charges (2017-2020). The company plans to challenge the demand through an appeal to higher authorities.

Stock performance of United Spirits for Period of 1 week, 6 months and 1 year:

United Spirits Limited faced an 8.78% decline over the past week but maintained a strong 14.2% growth over six months. Over the past year, it delivered an impressive 34.2% return, showcasing its long-term performance resilience.

Also Read: PSU stock jumps after company receives order worth ₹561 Cr for fire control system

Shareholding pattern of United Spirits:

All values in %Sep 2024Jun 2024Mar 2024
Promoter56.70%56.70%56.70%
FII16.10%15.10%16.70%
DII13.20%14.00%12.30%
Public14%14%14.40%
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About United Spirits:

United Spirits Ltd. (NSE: UNITDSPR), a subsidiary of Diageo PLC, is India’s leading beverage alcohol company. It offers a wide range of premium brands, including Johnnie Walker, Signature, McDowell’s No.1, and Captain Morgan, across various alcoholic beverages.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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