Day after USL seeks shareholders’ nod to be sick, scrip dips 2%

United Spirits shares fell by 2 per cent on Wednesday as the company is seeking approval from its shareholders to report sick to BIFR after its accumulated losses as on March 31, touched 86 per cent of peak net worth during the last four financial years.

The stock fell by 2.08 per cent to settle at Rs 2,920.30 on BSE. During the day, it dipped 3 per cent to Rs 2,890.05. At NSE, shares of the company lost 1.95 per cent to Rs 2,924.60. USL’s market valuation fell by Rs 902.94 crore to Rs 42,440.06 crore. As per the Sick Industrial Companies (Special Provisions) Act, 1985, if a firm’s accumulated losses at the end of a financial year result in erosion of 50 per cent or more of peak net worth in the preceding four financial years, it must report to BIFR.