Shares of Varun Beverages rose by upto 5% on September 11, ahead of its record date for a 2:5 stock split. Starting from September 12, the stock will trade on an ex-split basis.
The board has set September 12 as the record date, determining which shareholders are eligible for the split. Each share with a face value of Rs 5 will be divided into smaller shares with a face value of Rs 2. This follows a previous split in June 2023, when the face value was reduced from Rs 10 to Rs 5.
A stock split typically lowers the share price, making it more accessible to smaller investors without affecting the overall value of the company. This move can also increase trading volume and liquidity.
In the June quarter, Varun Beverages saw strong growth, with its net profit rising 26% year-on-year to Rs 1,262 crore. Revenue increased by 28.3% to Rs 7,333 crore, while EBITDA grew by 31.8% to Rs 1,991 crore.
Analysts at Elara Securities have maintained an ‘accumulate’ rating on the stock, raising the target price to Rs 1,780 per share. So far this year, Varun Beverages’ stock has gained 26%, outperforming the Nifty 50 index.
