 "Jubilant FoodWorks up 3% on clarification of parent's acquisition in HCCH")
Jubilant FoodWorks shares gained 2.8 per cent in trade and logged an intraday high of Rs 715.15 per share on BSE. The company's stock moved after it clarified that Jubilant FoodWorks has no part in its parent Jubilant Bhartia Group's 40 per cent acquisition in Hindustan CocaCola Holdings Private Limited, India.
Around 1:53 PM, Jubilant FoodWorks share price up 2.32 per cent at Rs 687.25 per share on BSE. In comparison, the BSE Sensex was up 0.89 per cent at 82,010.70. The market capitalisation of the company stood at Rs 45,347.86 crore. The 52-week high of the stock was at Rs 715.15 per share and the 52-week low was at Rs 420.85 per share.
Jubilant FoodWorks in its filing also said that the parent will acquire stakes through its entity Jubilant Beverages Limited.
"The company would like to inform that Jubilant Bhartia Group, in the Press Release dated December 11, 2024, announced that they will be acquiring a 40 per cent equity interest in Hindustan CocaCola Holdings Private Limited, India (‘HCCH’) through its entity Jubilant Beverages Limited," the filing read.
Atlanta-based fizzy drink maker Coca-Cola on Wednesday announced it had reached an agreement with Jubilant Bhartia Group to sell a 40 per cent stake in Hindustan Coca-Cola Holdings (HCCH).
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HCCH is the parent company of Hindustan Coca-Cola Beverages (HCCB), Coca-Cola’s largest bottler in India.
According to reports, individuals familiar with the deal at Bhartia Group have signed non-disclosure agreements with the beverage major. However, media reports suggest the deal is pegged at around Rs 12,500 crore, valuing HCCB at Rs 31,250 crore.
The Bhartias are expected to tie up with Goldman Sachs for funding the transaction, with the former likely to contribute 40 per cent (around Rs 4,000-5,000 crore) and the rest by the investment bank.
The move comes as part of The Coca-Cola Company’s (TCCC’s) strategy of refranchising its bottling operations globally as part of its asset-light strategy.
In the past one year, Jubilant FoodWorks shares have gained 20 per cent against Sensex's rise of 17 per cent.