 "Varun Beverages shares rise over 4% ahead of stock split record date")
Varun Beverages shares price today advanced 4.5 per cent in the intraday trade, and touched a high of Rs 1,588.6 per share. The buying in the stock came a day ahead of the company's record date for share split.
A record date is a cut-off date set by a company to determine which shareholders are eligible to receive a dividend/ stock bonus/ stock split shares.
At around 12:18 PM, shares of Varun Beverages were up 3.98 per cent or Rs 60.5 at Rs 1,579.45 per share. By comparison, the BSE Sensex was up 142.07 points at 82,063.36.
As per the company's stock exchange filing, dated September 2, the beverage company fixed Thursday, September 12, 2024, as the record date for its stock split.
A stock split is when a company raises the number of its outstanding shares of stock to boost the stock's liquidity.
"The Board of directors fixed Thursday, September 12, 2024, as the 'Record Date' for determining entitlement of equity shareholders for sub-division / split of existing equity shares of the company," the filing read.
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Earlier, on July 30, Varun Beverages had proposed a share split of the existing shares of the company for a face value of Rs 5 each fully paid-up, be sub-divided/split into shares having a face value of Rs 2.
"Sub-division/ split of the existing equity shares of the company, such that each equity share having face value of Rs 5 each fully paid-up, be sub-divided/split into such number of equity shares having face value of Rs 2 each fully paid-up," the filing read.
Analysts at Anand Rathi Shares and Stock Brokers have a 'Buy' call on Varun Beverages with a target price of Rs 1,900 per share.
The brokerage expects Varun Beverages to see strong growth going forward due to strategic investment, making new acquisitions, successful completion of the strategic acquisition of the Beverage Company (BevCo) in South Africa marking its entry into the African region, increasing its presence in the domestic market and looking for export opportunities.
In the past one year, the shares of Varun Beverages have gained 65.2 per cent against BSE Sensex's rise of 22 per cent.