United Spirits

United Spirits Ltd has informed that in accordance with the Offering Circular dated March 24, 2006 of issue of US$100,000,000 2.00 per cent Convertible Bonds due 2011 ("the Bonds"), the Company has received conversion notice in respect of 3,780 Bonds aggregating to US$ 3,780,000 from the bond holder.

The Committee of Directors of the Company at its meeting held on September 24, 2007 has allotted 215,038 equity shares of Rs 10/- each, on conversion of 3,780 Bonds at a conversion price of Rs 781/-per equity share, with the fixed rate of exchange on conversion of Rs 44.43 = US$1.00.

Consequent upon the allotment on conversion of Bonds, the total issued and paid up
equity capital of the Company stands increased to Rs 983,439,690/- divided into
98,343,969 equity shares of Rs 10 each from the present equity capital of Rs 981,289,310/- divided into 98,128,931 equity shares of Rs 10 each.

UBS - United Spirits

UBS Investment Research is bullish on United Spirits and has recommended buy rating on the stock with a 12-month target of Rs 1670.

EBITDA growth now improves from 29% over FY07 to 33% growth over FY07. Our EPS estimates have increased from Rs37.5 to Rs38.9 (+4%) for FY08E and from Rs45.1 to Rs46.8 (+4%) for FY09E

The sum-of-the-parts of the DCF of the core business and the value ascribed to W&M on the target EV/EBITDA-based valuation. The new price target is Rs 1670.