This mulitbagger stock trades ex-date for 1:1 stock split, soars 7% in volatile market
Varun Beverages produces and distributes carbonated drinks, juices and packaged drinking water in six countries including India. The stock turned ex-date for split in the ratio of 1:1.
Shares of Varun Beverages – a bottling and beverage distribution company – jumped as much as 7 per cent to touch the day’s high of Rs 862.90 per share on the BSE during Thursday's session after the stock turned ex-date for split in the ratio of 1:1.
“Varun Beverages board of directors had fixed Thursday, June 15, 2023 as the 'Record Date' for determining entitlement of equity shareholders for the purpose of sub-division/split of existing equity shares of the company from one equity share, having face value of Rs 10 each, into 2 equity shares, having face value of Rs 5 each,” the company said in a regulatory filing last week.
The bottler and distributor of Pepsico – Varun Beverages while citing the reason for the stock split said the company intends to enhance the liquidity of the company's equity shares and encourage participation of small investors by making equity shares of the firm more attractive to invest.
A stock split – a corporate action – wherein the company issues additional shares to shareholders, raising the total shares by the specified ratio based on the shares they held previously.
Varun Beverages stock has given a multibagger returns in the last one year outperforming the markets as it zoomed 119 per cent in the same period as compared to 20 per cent rise in Nifty50.
The counter is trading near its record high of Rs 873.58 per share touched on May 26, 2023.
At around 11:50 AM, Varun Beverages' share price quoted over 2 per cent higher at Rs 825.40, as against 0.28 per cent rise in the benchmark index.
Varun Beverages briefly surpassed the market capitalisation of Britannia Industries earlier in last week of May to become the fourth largest listed FMCG firm. As of June 15, 2023, it has a market cap of 1,07,229.04 crore according to the data available on the BSE.
Varun Beverages produces and distributes carbonated drinks, juices and packaged drinking water in six countries including India. Some of the PepsiCo brands produced by the company include Pepsi, Diet Pepsi, Seven-Up, Mirinda, Mountain Dew, Nimbooz, String, Slice, Tropicana among others.
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