Varun Beverages shares up 18x since IPO, but these investors missed the bus: CNBC-TV18 Edge

Domestic mutual funds first raised their stakes nearly a year after the stock was listed, as the March 2018 shareholding pattern showed that these funds together had a nearly 5% stake in the company, compared to 1% earlier. By then, the stock had already risen close to 50% in value.

From that point, until the next six quarters, domestic investors continued increasing their stakes in the stock, till the total stake reached a peak of 6.4% at the end of the June 2019 quarter. The March 2018-June 2019 period also saw the stock rise close to 50% in value. The company in 2019 had also announced its first bonus issue.

However, since then, domestic investors continued to gradually pare their stakes in the stock, trying to book the profits they made over time.

Domestic investors have now reduced their stakes in Varun Beverages for seven quarters in a row, starting March 2022 till the most recent September quarter. From that 6.4% peak, the domestic funds together currently own just over a 2% stake in the stock, with no fund, holding a stake above a percent.

During these seven quarters, the shares of Varun Beverages tripled in value and the company also announced another bonus issue of shares.

In contrast, the total FII stake has risen from 8% at the time of listing to the current level of 26.5%. FIIs have also increased their stakes in six out of the past seven quarters.

Some of the prominent FPIs that still hold a stake in the company include the Government Pension Fund and the Government of Singapore.

Shares of Varun Beverages are trading 10% higher at a record high of ₹1,287. The stock has nearly doubled so far in 2023.