Shaw Wallace & Company is planning to sell its entire 10.27 per cent stake in the Vijay Mallya-led United Spirits Ltd (USL), in a bid to reduce some part of its debt burden.

Confirming the news, USL said: “Due to corporate consideration, Shaw Wallace & Company intends to sell 1,02,82,553 shares, or 10.27 per cent stake, in the open market through the stock exchanges.”

The firm informed the Bombay Stock Exchange that that the deal, amounting to Rs 943.37 crore, will help the company in meeting its fund requirements to pay debt of Shaw Wallace, a wholly-owned subsidiary of United Spirits, acquired in 2005 and subsequently merged in USL last year. The deal will be jointly managed by Citigroup Inc. and CLSA Asia-Pacific Markets, under which the company plans to sell the shares in the price range of Rs 880.

United Spirits, known for its popular wine brands Black Dog, Signature, Royal Challenge and Romanov, held about 31.40% shares in Shaw Wallace.

Shares of USL declined 3.75 per cent on the Bombay Stock Exchange and were trading at Rs 883 in the morning session of stock exchange.