Jubilant FoodWorks shares trade in green after issuing clarification; here is all you need to know

The stock gained as much as 1.69% to ₹683.10 on the BSE after the company issued a clarification around the development that the Jubilant Bhartia Group will acquire a 40% equity interest in Hindustan CocaCola Holdings Private Limited, India (‘HCCH’), through its entity Jubilant Beverages Limited.

In the previous session, the stock dropped up to 4% following the news.

Jubilant FoodWorks said that since the company is not part of the proposed acquisition announcement, hence, no disclosure is required to be made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”).

Jubilant FoodWorks is a part of the Jubilant Bhartia Group, owned by Shyam Sunder Bhartia (husband of Shobhana Bhartia) and Hari Bhartia.

A day before, news surfaced that global beverage major Coca-Cola had sold a 40% stake in its India bottling business, Hindustan Coca-Cola Beverages Pvt Ltd (HCCBL), to Jubilant Bhartia Group.

"The Coca-Cola Company today announced that it has reached an agreement with Jubilant Bhartia Group, a multi-billion conglomerate with a global presence in diverse sectors, to acquire a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd, the parent company of the largest Coca-Cola bottler in India, Hindustan Coca-Cola Beverages Pvt Ltd," a joint statement said.

These changes and investments represent a significant milestone for Coca-Cola as the company continues to pursue its purpose to refresh the world and make a difference, the statement said.

Commenting on the development, Coca-Cola India President Sanket Ray said, "We welcome Jubilant Bhartia Group to the Coca-Cola System in India. With its diverse experience in various sectors, Jubilant brings decades of rich experience that will help accelerate the Coca-Cola system, enabling us to win in the market and provide greater value to local communities and consumers."

India is the fifth largest market for Coca-Cola globally.