4 months ago
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Dec 20, 2023 02:41 PM IST
Varun Beverages is one of PepsiCo's largest franchisees outside the US, and is a top gainer on Nifty FMCG Index and was last trading up 11.8% at ₹1,310.
Shares of Pepsi India bottling company Varun Beverages surged by 17 per cent to an all-time high of ₹1,380.45 on Wednesday, this a day after the company announced its decision to buy South Africa's The Beverage Company in a deal valued at 13.2 billion rupees ($158.73 million).
Earlier in the day, the shares of Varun Beverages had opened at ₹1,350, more than the previous close of ₹1,172 on Tuesday.
The Varun Beverages shares on Wednesday posted its biggest intra-day jump since June 10, 2021 and is on track for an eighth consecutive quarterly rise(AP) IPL 2024 Auction is here! Catch all the updates LIVE on HT. Join Now
The Beverage Company makes and distributes PepsiCo-branded and own-branded non-alcoholic beverages in South Africa.
They expect Varun Beverages to focus on PepsiCo's portfolio and gain share from Coca-Cola and local South African brands. The deal is expected to be completed on or before July 31, 2024, the company had said in a statement on Tuesday.
The Varun Beverages shares on Wednesday posted its biggest intra-day jump since June 10, 2021 and is on track for an eighth consecutive quarterly rise, if trend holds. Including the session's gains, the shares have surged more than 88% this year so far, compared to a 25% gain in the Nifty FMCG Index.
Varun Beverages also inked a memorandum of understanding with the Jharkhand government on Tuesday to set up a manufacturing plant in the state, with a capital expenditure of 4.5 billion rupees.
(With Reuters inputs)
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