Varun Beverages trades ex-split; shares jump ~6%

12 Sep 2024 , 11:23 AM

Shares of Varun Beverages Ltd., one of PepsiCo Ltd.’s top bottling partners, rose as much as 6% on Thursday, the first day of trading following the stock split.

The stock has climbed in three of the four trading sessions this week.

Varun Beverages plans to split its ₹5 equity shares into ₹2 equity shares, as previously announced.

The corporation has set September 12 as the record date for the stock split. Last year, the corporation chose to split a ₹10 equity share into ₹5 shares each.

A stock split is typically used by a corporation to expand its outstanding shares while simultaneously improving trading liquidity by making the stock more cheap to its stockholders.

Varun Beverages has often rewarded shareholders through bonus issues, dividends, or equity share splits.

Following its listing in 2017, the firm announced a 1:2 share bonus issuance, which meant that shareholders received one free share for every two shares they held.

The business has announced a similar 1:2 bonus issue in 2021 and 2022.

At around 11.16 AM, Varun Beverages was trading 4.49% higher at ₹655.85, against the previous close of ₹627.65 on NSE. The counter touched an intraday high and low of ₹665, and ₹635.25, respectively.

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