Varun Beverages rose 8.29% to Rs 579.50 at 10:11 IST on BSE after the company said it will acquire PepsiCo India's franchised sub-territory in Jharkhand.
The announcement was made after market hours yesterday, 20 December 2017.Meanwhile, the S&P BSE Sensex was up 2.12 points, or 0.01% to 33,779.50.
On the BSE, 37,000 shares were traded in the counter so far, compared with average daily volumes of 6,199 shares in the past two weeks. The stock had hit a high of Rs 582.85 so far during the day, which is also a record high for the counter. The stock had hit a low of Rs 550 so far during the day. The stock hit a record low of Rs 341.25 on 14 March 2017.
Varun Beverages said that its board approved entering into a binding agreement to acquire PepsiCo India's previously franchised sub territory in Jharkhand (20 districts) along with manufacturing facilities and franchisee rights for Chhattisgarh, subject to the satisfactory completion of due diligence and final approval of PepsiCo. Upon completion of this acquisition, the company will be a franchisee for PepsiCo products across 20 states and 2 Union Territories of India.
On a consolidated basis, net profit of Varun Beverages rose 159.91% to Rs 33.71 crore on 7.96% rise in net sales to Rs 959.79 crore in Q3 September 2017 over Q3 September 2016.
Varun Beverages is one of the largest franchisee in the world (outside USA) of carbonated soft drinks (CSD) and noncarbonated beverages (NCB) sold under trademarks owned by PepsiCo. It produces and distributes a wide range of CSD as well as a large selection of NCB including packaged drinking water.
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