United Spirits shares surged over 3 percent on June 10, touching a five-month high, following media speculation that parent company Diageo was exploring a sale of its stake in IPL franchise Royal Challengers Bengaluru (RCB). However, the spirits giant quickly dispelled the rumours, terming them speculative and unfounded.

In a regulatory filing with the Bombay Stock Exchange (BSE), United Spirits stated, “This has reference to your email communication dated 10th June 2025 seeking clarification from the Company on media reports about potential stake sale of RCB. The Company would like to clarify that the aforesaid media reports are speculative, and it is not pursuing any such discussions.”

Earlier in the day, a Bloomberg report had claimed Diageo was in talks with advisors to evaluate a potential sale, partial or full, of the RCB franchise, with a valuation of up to ₹17,000 crore. The report also suggested that Diageo had not reached a final decision.

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RCB Title Glory, Strong Earnings Fuel Investor Confidence Amid Stake Sale Rumours

RCB, one of the original IPL franchises, was initially owned by Vijay Mallya before Diageo acquired United Spirits and took control of the team. This season, the Bengaluru-based side finally broke its long-standing title drought by winning its maiden IPL trophy, defeating Punjab Kings in a thrilling final at the Narendra Modi Stadium.

Despite the off-field noise, strong quarterly earnings contributed to investor optimism. United Spirits reported a 74.7 percent jump in net profit for Q4FY25 at ₹421 crore, with revenue rising 8.9 percent to ₹3,031 crore. EBITDA rose 37.7 percent, while operating margins improved from 12 to 15.2 percent.

A final dividend of ₹8 per share was also suggested by the board. Citing strong performance in the premium alcohol segment, analysts such as JPMorgan have upgraded the stock to "Overweight" with a revised target price of ₹1,760, indicating that they are still bullish.

Investors can feel secure in United Spirits' strong financial standing and the team's historic on-field success, as the company has categorically denied any intentions to sell RCB.