Shares of Varun Beverages, one of the largest franchisee of PepsiCo, surged nearly 6 percent on Thursday. The stock is trading adjusted for its split.
The board of the company had fixed June 15 (Thursday) as the ‘Record Date’ for determining entitlement of equity shareholders for the 1:2 stock split.
The board in its meeting on May 2 approved a proposal to split shares in the proportion of 1:2 – which means for every existing share an investor holds, two additional shares will be issued by the company.
As the stock traded post-split on Thursday, it gained more than 6 percent to hit a high of Rs 862.90 in morning trade.
Varun Beverages Ltd. is a key player in the beverage industry and one of the largest franchisees of PepsiCo in the world, outside the United States.
The company produces and distributes a wide range of carbonated soft drinks as well as a large selection of non-carbonated beverages including packaged drinking water sold under trademarks owned by PepsiCo.
Varun Beverages reported a strong March quarter led by robust growth in volumes and realisations. The company reported a growth of 11 percent year-on-year in realisations to Rs 174 per unit. Savings in raw material prices and an improved product mix also led to a 90 basis points improvement in gross margin on a year-on-year basis.
Shares of Varun Beverages are currently trading 2.3 percent higher at Rs 826.
First Published: Jun 15, 2023 11:58 AM IST
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