The shares of Varun Beverages increased 5% during Thursday’s trading session, reaching an intraday high of Rs 595.65 on the BSE. The company’s introduction of qualified institutional placement (QIP) is the reason for the buying interest in the stock.
Varun Beverages’ stock was up 1.33 per cent at Rs 575.35 a share on the BSE at 12:50 PM. The BSE Sensex, by contrast, was down 0.22 per cent at 77,518.05. The company’s market capitalization was Rs 1,86,915.42 crore. On the BSE, the stock’s 52-week high was Rs 682.84 per share, and its 52-week low was Rs 399.44 per share.
The QIP was introduced by Varun Beverages on Thursday, November 14, 2024. The issue’s floor price was set by the business at Rs 594.56 per share.
On October 9, 2024, the business filed a proposal to raise to Rs 7,500 crore. The money will be used for general business objectives, debt repayment, and investments in associates, joint ventures, and subsidiaries.
Varun Beverages, which has a fiscal year that runs from January to December, generated net revenues of Rs 16,042.58 crore in 2023, a 21.8% increase.
The company recorded a 28.3% increase in revenue to Rs 7,196.86 crore and a 25.5% increase in profit to Rs 1,261.83 crore for the June quarter.
In order to increase its geographic presence in the African market, the firm announced last December that it would acquire Beverage firm (Bevco), a company established in South Africa, and its wholly-owned subsidiaries for an enterprise value of Rs 1,320 crore.
A well-known bottling company in India, Varun Beverages Limited is mainly involved in the manufacturing and sale of a variety of beverages, such as juices, soft drinks, and bottled water. The company, a major franchisee of PepsiCo, produces and distributes well-known brands, including Pepsi, Mountain Dew, 7UP, Mirinda, Tropicana, Slice, and Aquafina, throughout India and several other markets. Varun Beverages has an extensive manufacturing and distribution network that spans several nations, including those in the Middle East, Africa, and parts of Asia.
The company’s substantial influence in the global beverage business is reflected in its public listing on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Varun Beverages, which is well-known for its expansion, has benefited from the rising demand for packaged drinks and continues to prioritize sustainability through eco-friendly and water-saving measures.
Varun Beverages’ stock has increased 39% over the last year, while the Sensex has increased 18%.
