Shareholders of United Spirits have approved the group's plan raise US$225m through a bond issue, with the distiller strongly denying that funds will be used to prop up UB Group's Kingfisher Airlines. 

At a special general meeting today (20 January), the distilling arm of the Vijay Mallya's UB Group got the green light to issue the foreign currency convertible bonds. "The members have unanimously approved the special resolution for issue of FCCBs, convertible into equity shares, for an amount not exceeding $175m with a green shoe option not exceeding $50m," said United Spirits.

The approval comes against the backdrop of concerns raised by industry analysts over the end use of these funds, pointing to the UB Group’s debt-ridden Kingfisher Airlines, a contention which the company strongly denied.