Heard on the Street: Buzz on Vijay Mallya-led UB Group selling stake in Mangalore Chemicals & Fertilizers

The market was abuzz with speculation that Vijay Mallya-led UB Group plans to sell part of its stake in Mangalore Chemicals & Fertilizers to raise funds to ease the liquidity crunch in the promoter group-run commercial airline company Kingfisher Airlines.

The promoter holding in the company stood a little over 30%. According to market players, the company had initiated talks with strategic and financial investors for a potential stake sale.

Zuari Industries and Coromandel Fertilisers could be likely suitors for the stake. Mangalore Chemicals closed at Rs 40.25 on BSE on Thursday, down 1.8% from the previous close.

“We are not in discussion with any party for divestment,” Mangalore Chemicals spokesperson said in response to an ET query. Zuari did not respond to ET’s query, while Coromandel dismissed it as “market speculation”.