Varun Beverages is holding strong to its position of being the top gainer on the BSE since the opening bell today. The stock, which had closed yesterday at Rs.1172, opened 15% higher at Rs.1350 and went on to hit a new 52-week high at Rs.1380.45, up 18%.
The stock price zoomed to this new high on its announcement that it has acquired 100% stake in South African company, The Beverage Company (Bevco) .
Bevco is engaged in the business of manufacturing and distribution of licensed (PepsiCo Inc.)/own-branded non-alcoholic beverages in South Africa. It has franchise rights from PepsiCo Inc. in South Africa, Lesotho and Eswatini. Further, it also has distribution rights for Namibia and Botswana.
Proposed transaction is at an Enterprise Level and is valued at ZAR 3 Billion (Rs 13.20 bn; 1 ZAR = Rs.4.4) BevCo achieved net revenue of ZAR 3,615 mn (Rs.15.90 bn) in FY23.