Varun Beverages witnessed a remarkable surge in early trade on Wednesday, soaring as much as 18% to the day’s high of Rs 1,380.45 apiece on the BSE. The heightened buying interest in the stock was sparked by favorable brokerages’ reactions to the company’s venture into the African market through the acquisition of The Beverage Company.
In a regulatory filing, the company announced, “The Board of Directors of the Company, at their meeting held today, considered and approved acquiring a 100% stake in the business conducted by The Beverage Company (Proprietary) Limited, South Africa, along with its wholly-owned subsidiaries (hereinafter referred to as ‘Bevco’), with the option to accept minority co-investments from large equity funds subject to regulatory and other approvals (if any), including but not limited to PepsiCo Inc. and Competition Commission South Africa.”
Bevco, the focus of this strategic move, is actively involved in the manufacturing and distribution of licensed (PepsiCo Inc.) and own-branded non-alcoholic beverages in South Africa. The company holds franchise rights from PepsiCo Inc. in South Africa, Lesotho, and Eswatini, along with distribution rights for Namibia and Botswana.
As of 10:57 am, Varun Beverages shares continued their upward trajectory, trading 10.55% higher on the NSE at ₹1,295.30.
