Varun Beverages shares rise 4% ahead of record date for 2:5 stock split; check details

Varun Beverages Limited shares gained over 4% to hit an intraday high of ₹1,589.3 apiece on the NSE on Wednesday, September 11, ahead of the stock split in the 2:5 ratio announced last week.

Varun Beverages informed the exchanges on September 2 that the company's board of directors has fixed Thursday, September 12, 2024, as the record date for determining shareholders' eligibility for the subdivision of existing equity shares.

As part of the stock split proposal, all current shares with a face value of ₹5 each will be divided into shares with a face value of ₹2 each. Earlier in June 2023, the company announced a stock split that reduced the face value of its shares from ₹10 to ₹5.

Earlier on July 30, the company's board proposed the stock split and mentioned that the rationale behind the split was to enhance the liquidity of the company's equity shares and encourage participation from small investors by making shares of the company more attractive to invest in.

Varun Beverages reported consolidated revenue from operations at ₹7,333.7 crore in the June quarter of FY25, up over 28% compared to ₹5,699.7 crore in the year-ago period. The company’s revenue from operations also increased over 66% from ₹4,398 crore in the March quarter of FY24.

In Q1FY25, the company’s consolidated net profit grew by more than 25% to ₹1,261.8 crore compared to ₹1,005.4 crore in the corresponding quarter of the preceding fiscal. Sequentially, the company’s net profit grew more than 130% from ₹547.98 crore in Q4FY24.

Shares of Varun Beverages have gained nearly 69% in the last one year and over 10% in the past six months. Shares of PepsiCo’s largest bottler outside the United States have rallied 26% year-to-date.

Varun Beverages shares closed at ₹1,572.8 apiece, up by 3.47% on the NSE.