Varun Beverages' Shares Dip Despite Commencing Production at Gorakhpur Facility

15 Apr 2024 , 01:13 PM

Varun Beverages’ share price declined by 2% in the opening trade on April 15 despite commencing commercial production at its Gorakhpur facility. At the time of writing, Varun Beverages was trading at ₹1,374.45 on the BSE, down by ₹10.90, or 0.80%.

The company announced the start of commercial production of carbonated soft drinks and energy drinks at its Gorakhpur facility, with plans to introduce juices and value-added dairy products later.

In a board meeting on April 10, Varun Beverages approved an investment of up to 14% of equity share capital in Huoban Energy 11 Private Limited and Aspirative Creative Ventures Private Limited, engaged in supplying solar power in Maharashtra and Uttar Pradesh, respectively.

The total cost of acquisition for these investments is ₹5.14 Crore, expected to be completed by December 9, 2024.

Varun Beverages’ share touched a 52-week high of ₹1,560.30 on February 26, 2024, and a 52-week low of ₹687.50 on April 20, 2023, currently trading 13.09% below its high and 97.24% above its low. The stock has gained 61% in the last nine months.

Varun Beverages Limited (VBL) is a multinational company manufacturing, bottling, and distributing beverages, ranking as the second largest bottling company of PepsiCo’s beverages worldwide outside the United States and the largest in the AMESA sector. Founded in 1995 as a subsidiary of RJ Corp, the company is named after founder Ravi Jaipuria’s son.

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