Press release regarding Company acquiring NAO is enclosed.
Awaiting price reaction for this filing.
United Spirits Limited (Diageo India) will acquire the remaining stake in Nao Spirits & Beverages Private Limited (NAO), maker of award-winning Indian craft gin brands 'Greater Than' and 'Hapusa' and premium rum 'Pipa'. The deal values NAO at an Enterprise Value of INR 130 crores (~USD 15.2 million). USL will buy 37,683 equity shares from existing shareholders for ~INR 53.80 crores and subscribe to fresh equity shares and CCPS for ~INR 56 crores, taking its stake from 30% to ~97.07% initially (making NAO a subsidiary), and ultimately to 100% by June 2026. An additional INR 20 crores is authorised for future funding of working capital needs. NAO's FY24 turnover was INR 77.73 crores with net sales of INR 34.83 crores, growing strongly from INR 24.91 crores in FY22. The first tranche is expected to close by June 27, 2025.
Strategically positive - strengthens USL's presence in India's fast-growing premium craft gin segment, complementing its international gin portfolio (like Tanqueray). NAO will be consolidated as a subsidiary, adding incremental revenue, though the size is modest relative to USL's overall scale. The acquisition aligns with premiumisation and 'Made in India' trends in alco-bev and supports long-term growth narrative for shareholders.