Shares of liquor giants such as Radico Khaitan, Som Distilleries, and United Spirits Ltd. surged up to 5% on 19th September after Andhra’s new liquor policy was cleared by state Chief Minister N. Chandrababu Naidu on Wednesday.

The cabinet has decided to implement a private retail system for liquor sales to improve management efficiency, with 10% of the 3,736 retail outlets reserved for the toddy-tappers community. The new excise policy will take effect from 1st October.

By privatising liquor outlets, the government aims to enhance retail management and customer experiences, potentially boosting consumer demand and sales volumes. Liquor companies reacted positively, with their stocks rising in Thursday’s trading session, driven by positive momentum in the segment.

The privatisation of liquor retail is viewed as a government effort to liberalise the market, promoting competition and potentially boosting overall sales volumes.

During the early session on Thursday, Radico Khaitan surged to an all-time high of Rs 2,332.70, United Spirits Ltd. reached a new 52-week high of Rs 1,570.00, United Breweries Ltd. hit a day’s high of Rs 2,150.00, Som Distilleries touched a day’s high of Rs 121.99, and G M Breweries Ltd. peaked at Rs 972.60 on the NSE. However, most of these gains faded as the day progressed.

At 11:46 AM, the shares of Radico Khaitan were trading 3.69% lower at Rs 2,172 on NSE.

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