Varun Beverages shares soar over 9 pc on PepsiCo deal

Shares of Varun Beverages today surged over 9 per cent after the company said it will acquire PepsiCo India's previously franchised sub-territory in Jharkhand along with manufacturing facilities and franchise rights for Chhattisgarh.
The stock soared 9.12 per cent to end at Rs 583.95 on BSE. During the day, it surged 15.74 per cent to Rs 619.40 -- its 52-week high.
At NSE, shares of the company jumped 8 per cent to close at Rs 578.75.
In terms of equity volume, 1.27 lakh shares of the company were traded on BSE and over 14 lakh shares changed hands at NSE during the day.

The board of the company in a meeting held yesterday approved "its intent to enter into a binding agreement to acquire Pepsico India's previously franchised sub territory in the state of Jharkhand (20 districts) along with manufacturing facilities and franchise rights for the state of Chhattisgarh".
However, it also added that it would be "subject to the satisfactory completion of due diligence and final approval of Pepsico".
Upon completion of this acquisition, Varun Beverages will be a franchise for PepsiCo products across 20 states and 2 union territories of India.