United Spirits shares rise as company files plea in Karnataka High Court in ₹1,337 crore loan dispute

United Spirits share price traded higher on Wednesday following the company’s announcement that it has filed an appeal before the Karnataka High Court in a ₹1,337 crore loan dispute with United Breweries. United Spirits shares gained as much as 1.03% to ₹1,561.00 apiece on the BSE.

The matter relates to a loan agreement dated July 3, 2013, under which United Spirits Ltd (USL) extended a loan of ₹1,337 crore to United Breweries. In 2015, United Breweries defaulted on the agreed interest payment of 9.4%, prompting USL to recall the entire loan along with accrued interest and initiate arbitration proceedings.

The Arbitral Tribunal subsequently rejected USL’s claim, terming it premature. USL challenged this decision before the Commercial Court in Bengaluru, which, in its judgment dated March 3, 2025, upheld the arbitral award.

In response, USL has now filed an appeal before the Karnataka High Court, contesting the Commercial Court’s decision.

In its regulatory filing, USL clarified that the matter pertains to a claim initiated by the company, and as such, it does not anticipate any financial impact from the ongoing legal proceedings.

United Spirits Share Price Trend

United Spirits share price has shown strong performance over the long term, despite some short-term volatility. United Spirits shares have rallied 11% in the past one month, although it remains down over 6% on a year-to-date (YTD) basis.

On a one-year timeframe, United Spirits share price has gained 21%, and over the past two years, the stock has surged 100%. Impressively, United Spirits share price has delivered multibagger returns of 190% over a five-year period. 

At 12:15 PM, United Spirits share price was trading 0.64% higher at ₹1,555.00 apiece on the BSE.

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