Offering no more relief to the troubled Kingfisher Airlines, a consortium of banks led by State Bank of India on Wednesday decided to recall their loans . The banks are now likely to realise the collaterals and the consortium has shares of United Spirits valued at Rs 6,500 crore.
But, Varun Lochab of Religare Capital Markets believes United Spirits (UNSP) does not have any direct exposure to Kingfisher Airlines and United Breweries Holdings Limited (UBHL) may have acted as a corporate guarantee. He also added that though, the total value of the collaterals may be to the tune of Rs 6500 crore, the value of shares pledged are certainly lower.
Lochab also said, "We maintain our buy rating on United Spirits with a target price of Rs 2,500. From the financials point of view, we don't see a material impact."
14/02/13 Varun Lohchab/moneycontrol.com
