Shares of Varun Beverages hits 9-year high on PepsiCo franchisee deal. The stock rose as much as 10.2 per cent to Rs 590 in early trade. The stock hit its highest level since December 22, 2008, and posted a record intraday percentage gain.
At the closing trade, the shares were up 9.12 per cent at Rs 583.95 on the BSE. On the NSE, the stock gained 8.29 per cent to Rs 579.95.
According to a BSE filing, the board of directors approved the company's intent to enter into a binding agreement to acquire PepsiCo India's previously franchised sub-territory in Jharkahand (20 districts) along with the manufacturing facilities and franchisee rights for Chhattisgarh.
The deal is subject to the satisfactory completion of due diligence and final approval of PepsiCo. Upon completion of this acquisition, Varun Beverages will be a franchisee for PepsiCo products across 20 States and 2 Union Territories of India.
About 538,900 shares change hands, more than 13 times the stock's 30-day average. The stock had gained 41 per cent this year up to Wednesday's close.
(With inputs from Reuters)