Financial services provider Srei Venture Capital has announced its plans to liquidate its Rs 430 crore loan exposure to Kingfisher Airlines following the closure of a proposed Diageo-United Spirits deal.

Srei, part of the Srei Infrastructure Finance Limited, had acquired loans worth Rs 430 crore given by ICICI Bank to the beleaguered airline last year.

Hemant Kanoria, chairman & managing director of Srei, claimed that the company was well covered, and acquiring the loans was not a stupid decision.

Speaking on the topic, Kanoria said, "The security value (of the loan) has substantially risen and we are well covered. It was not a stupid decision which everyone thought it was."

Vijay Mallya-led UB Group has reached an agreement with UK-based global liquor giant Diageo for sale of a majority 53.4 per cent stake in United Spirits for around $2 billion.

The Diageo-United Spirits deal, which is presently in the process of completion, has already gained approvals from regulators like CCI and SEBI. The deal also includes an open offer for purchase of around 26 per cent stake from non-promoters of the company.

Stock in United Spirits have nearly doubled in market value over the past six months and more than tripled over the past one year.