Board at their meeting held today have approved purchase of equity shares from existing shareholders of NAO and subscription of fresh shares of NAO.
Awaiting price reaction for this filing.
United Spirits Limited (Diageo India) has approved increasing its stake in craft spirits maker Nao Spirits & Beverages (NAO) from 30% to 100% at an Enterprise Value of INR 130 crores (~USD 15.2 million). The deal involves buying 37,683 equity shares from existing shareholders for ~INR 53.80 crores and subscribing to 31,820 fresh equity shares plus 27,577 CCPS for ~INR 56 crores. After the first tranche (by June 27, 2025), USL will hold ~97.07% of NAO, making it a subsidiary; the remaining ~3% will be acquired by June 2026. NAO, launched in 2017, is behind India's leading craft gin brands 'Greater Than' and 'Hapusa' and premium rum 'Pipa', with FY24 turnover of INR 77.73 crores. An additional INR 20 crores has been authorized for further investment to fund NAO's working capital needs.
This acquisition strengthens Diageo India's presence in India's fast-growing premium craft gin segment, complementing its international gin portfolio (e.g., Tanqueray). For shareholders, this is a strategic bolt-on that brings NAO's award-winning craft brands fully under USL's distribution and production umbrella, though the deal size is small relative to USL's overall scale.