United Spirits Share In Green, As Company Challenges Rs 1,337 Crore Loan Verdict in High Court

United Spirits Ltd (USL) shares moved higher on Wednesday after the liquor major confirmed it has filed an appeal in the Karnataka High Court against a ruling that dismissed its Rs 1,337 crore loan recovery claim against United Breweries.

The stock rose as much as 1.41 per cent during the session, hitting Rs 1566.80 on the Bombay Stock Exchange (BSE) before paring some gains at 2:10 pm on April 30. The company enjoys a market capitalisation of Rs 1,13,961.33 crore, as per BSE. United Spirits share price closed in green at Rs 1,555.20, up 0.60 per cent.

Additionally, United Spirits stock has gained 21 per cent over the past year and has doubled in value over two years. In a five-year span, shares have surged 190 per cent, delivering multibagger returns for long-term investors.

United Spirits stock has held firm in investor portfolios. The stock has climbed 11 per cent in the past month, though it remains down about 6 per cent on a year-to-date basis.

Legal Dispute Over 2013 Loan Deal

The case dates back to a loan agreement signed on July 3, 2013, under which USL extended Rs 1,337 crore to United Breweries. The terms included an annual interest rate of 9.4 per cent. Trouble began in 2015 when United Breweries allegedly failed to make interest payments. USL responded by recalling the entire loan, along with accumulated interest and sought arbitration.

However, the Arbitral Tribunal turned down USL's claim, labelling the demand for repayment as premature. This setback prompted the company to escalate the matter to the Commercial Court in Bengaluru, which sided with the arbitral ruling in a verdict delivered on March 3, 2025.

Undeterred, USL has now taken the battle to the Karnataka High Court, seeking to overturn the lower court’s endorsement of the arbitration outcome.

In a regulatory disclosure, the company clarified that the legal action stems from a claim it had initiated and emphasised that it does not foresee any immediate financial fallout. “The matter pertains to a claim initiated by the company, and as such, there is no anticipated financial impact,” the filing stated.