Shares in United Spirits Ltd fell as much as 8.4 percent on profit-taking after Diageo PLC offered to sell most of its unit Whyte & Mackay's (W&M) whisky assets to address Britain's competition concerns.
In July, Diageo took a 25 percent stake in United Spirits, the owner of Whyte & Mackay.
United Spirits had gained 8.2 percent in the previous two sessions in anticipation of the news, compared with a 1.9 percent gain in the BSE index.
Analysts say the sale of W&M, while reducing the company's debt, may already be reflected in United Spirits' shares, which have risen more than five-fold since the start of 2012.
Shares in United Spirits down 1.06 percent as of 0438 GMT.