Radico Khaitan, GM Breweries, Globus Spirits, United Breweries gain as Punjab rolls out new excise policy to make liquor cheaper by up to 60%
liquor stocks in focus: Shares of liquor stocks gained up to three per cent in Thursdays intraday trade after the Punjab government rolled out new excise policy 2022-23
Shares of liquor stocks gained up to three per cent in Thursday's intraday trade after the Punjab government rolled out new excise policy 2022-23. As per the policy, liquor prices in the state can come down up to 60% in the state.
Reacting to the development, GM Breweries jumped nearly three per cent to Rs 595 per share, while Radico Khaitan, United Breweries, United Spirits, Globus Spirits gained between one to two per cent on Thursday.
Earlier, the Punjab government on Wednesday had approved a new excise policy, which is expected to generate revenue worth Rs 9,647.85 crore, a 40 per cent rise over the last fiscal, and make liquor cheaper by making it at a par with the neighbouring states, reported news agency IANS.
A decision to this effect was taken by the Cabinet at its meeting presided over by Chief Minister Bhagwant Mann. The new excise policy will be applicable for a period of nine months from July 1.
The new Excise Policy aims to break the nexus of mafia involved in liquor trade, said the news agency.
As per the new excise policy, there will be allotment of 177 groups with the provision of 6,378 vends. The excise duty on all kind of liquor, except medium liquor, will be charged at the rate of one per cent of the wholesale price.
On the same pattern assessed fee of Indian-made foreign liquor shall also be charged at the rate of one per cent of the wholesale price. The prices of liquor shall now be almost on a par with neighboring states, an official statement said.
Meanwhile, around 2pm, shares of GM Breweries, Radico Khaitan, United Breweries, United Spirits, Globus Spirits were trading 589.55 per share, Rs 820.65, Rs 1501, Rs 787.35 and Rs 974.85 per share respectively on the BSE.
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