United Spirits Pours ₹1,298 Cr Into Craft Gin Crown Jewel NAO

United Spirits Ltd (USL), Indian spirits giant and Diageo subsidiary, has approved a multi-layered investment proposal to significantly increase its stake in NAO Spirits & Beverages Pvt Ltd, maker of premium craft gin brands like Greater Than and Hapusa. The move is part of USL's aggressive push into India's high-growth premium spirits market.

Key Highlights:

- USL will acquire 31,820 equity shares and 27,577 compulsorily convertible preference shares (CCPS) of NAO for ₹560 crore.
- Additionally, it will acquire 37,683 outstanding equity shares of NAO worth ₹538 crore.
- The board also sanctioned additional investment of up to ₹200 crore, which would make the total expenditure a potential ₹1,298 crore.
- Through these transactions, USL's interest in NAO will rise to 97.07%, respectively rendering NAO a nearly wholly owned subsidiary.
- The purchase is done in tranches and is subject to typical closing conditions and regulatory approvals.
- NAO Spirits, founded in 2016, has carved a niche in India's premium gin market and is now ready to go global.

Prospects:

This strategic acquisition gives USL full ownership of a high-growth, high-margin craft spirits portfolio. With gin consumption gaining among urban millennials and exports gaining traction, NAO's buy could be the starting point of USL's premiumization strategy.

Sources: Economic Times, Trendlyne, United Spirits Board Filings