Varun Beverages Shares Jump 5% On Stock Split; Company Sets Record Date For Split

Varun Beverages, which is the second-largest PepsiCo franchisee globally, is splitting its shares from a face value of Rs 5 to Rs 2 each

By : ABP News Bureau | Updated at : 12 Sep 2024 12:33 PM (IST)

Varun Beverages Shares Jump 5% On Stock Split; Company Sets Record Date For Split Varun Beverages Shares Jump 5% On Stock Split; Company Sets Record Date For Split

Varun Beverages shares: The board of directors had earlier set September 12 as the record date, ensuring that shareholders listed on this date would be eligible for the split.

Source : FreePik

Varun Beverages shares: Varun Beverages Ltd shares surged by 5 per cent during early trading on Thursday as the stock turned ex-date for a highly anticipated stock split. The shares, now trading at Rs 640.15 on the BSE, opened higher than the previous close of Rs 627.60. The stock continued to rally, reaching an intraday high of Rs 665.65. At 10.15 am, the shares of Varun Beverages Ltd are trading at Rs 659.00 apiece, rising 5.00 per cent on the BSE on Thursday. On the NSE, the stocks are trading at Rs 657.90 per share, up 4.82 per cent.

The beverage company, which is the second-largest PepsiCo franchisee globally, is splitting its shares from a face value of Rs 5 to Rs 2 each. The board of directors had earlier set September 12 as the record date, ensuring that shareholders listed on this date would be eligible for the split.

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This latest stock split follows a previous reduction in June 2023, when the face value of shares was lowered from Rs 10 to Rs 5. Investors had already shown strong interest ahead of the ex-date, with shares climbing over 3 per cent in Wednesday’s session.

In terms of financial performance, Varun Beverages reported robust earnings for the June quarter, with net profit soaring 26 per cent year-on-year (YoY) to Rs 1,262 crore. Revenue for the same period increased by 28 per cent, totaling Rs 7,333 crore, while profit margins improved by 74 basis points, reaching 27.7 per cent.

Investors remain bullish on the stock as the company continues to deliver solid financial results coupled with strategic moves like stock splits to enhance liquidity.

Meanwhile, Sensex and Nifty opened higher on Thursday, buoyed by a global market rally and foreign fund inflows. By 10:45 am, the BSE Sensex had gained 198 points, reaching 81,722, while the NSE Nifty50 rose 77 points to trade at 24,995.