Shaw Wallace hit the 20% upper ceiling early today on reports that SABMiller will take managment control and a 50% stake in a JV with Shaw Wallace.

After that initial spurt to Rs 43.55, the scrip of the Chhabrias-promoted liquor major eased to Rs 42.80, still higher than its yesterday's close by 17.91%.

A total of 68,277 Shaw Wallace shares were traded on BSE by 10:05 IST. Even yesterday,  before the news was out, the stock soared 15.4% to Rs 36.30.

South Africa-based multinational brewer SABMiller on Wednesday signed a deal to acquire a 50% stake in the breweries business of Shaw Wallace & Co. The acquisition, which was signed in Dubai, is valued at $132.8 million (Rs 625 crore).

SABMiller will route the acquisition through its subsidiary Mysore Breweries, leading to a 50:50 merger with the brewing business of Shaw Wallace. The merged entity, Shaw Wallace Breweries, will hold the combined brewing interests of MBL and Shaw Wallace even as the operational and management control will rest with the former.

No FIPB permission is required for the acquisition, it is reckoned, as it entails a merger between two Indian companies.

Shaw Wallace has a 28% share of the domestic beer market. Its portfolio includes beer brands like Haywards and Royal Challenge Premium Lager.

Shaw Wallace, a leading exporter of Indian-made foreign liquor (IMFL), is a colossal enterprise -- spanning 17 businesses and 55 quality products. The company has six main divisions -- agriculture and chemicals, scraps, detergents and toiletries, international business, real estate and shipping agencies. Shaw Wallace has a manufacturing network of more than 20 brewing units spread across the country.

The wines, spirits and beer division constitutes another lucrative and profit-making division of the company. Haywards Fine Whisky, Old Tavern, Director's Special and Royal Challenge are some of its popular brands. Meanwhile, Shaw Wallace's beer brands Kohinoor and Lal Toofan are being sold in the US and the UK, respectively.

For the third quarter ended 31 December 2002, Shaw Wallace reported a net profit of Rs 1.18 crore (Rs 0.19 crore) on a 22.3% fall in sales to Rs 30.60 crore (Rs 39.37 crore).

As on 31 December 2002, promoters held 54.25% stake in Shaw Wallace, while institutions and the public held 25.10% and 17.05%, respectively.