Varun Beverages' shares fell in early trading on Monday, despite the company's announcement that its board will explore a request to raise capital through a Qualified Institutions Placement (QIP) on October 9. Varun Beverages' shares slid 3.41% to Rs 559.20 on the BSE, down from its previous closing of Rs 578.95. The firm's market capitalization fell to Rs 1.83 lakh billion. A total of 0.97 lakh shares of the company changed hands, resulting in a turnover of Rs 5.45 crore.
Varun Beverages' shares returned 148% in two years and 366% in three years.
In terms of technicals, Varun Beverages' relative strength index (RSI) is 35.1, indicating that the stock is not overbought or oversold. Varun Beverages' shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day, and 200 day moving averages.
On October 6, the business announced:
"Pursuant to the provisions of Regulation 29(1)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that a meeting of the Company's Board of Directors will be held on Wednesday, October 9, 2024, inter alia, to consider and approve the following:
(i) Funds are raised by the issuing of equity shares through Qualified Institutions Placement ("QIP").
(ii) Notice of Postal Ballot for obtaining permission of Equity Shareholders for raising money through the issuing of Equity Shares via QIP."
Global brokerage company HSBC has commenced coverage of the stock with a 'Buy' recommendation. It set a price objective of Rs 780 per share.
Varun Beverages controls 90% of PepsiCo's India bottling volume in a market with low soft drink penetration, as opposed to the fragmented Coca-Cola system. The company is the second-largest soft drink bottler in India, accounting for 28% of the carbonated soft drink (CSD) industry. HSBC reports that Coca-Cola's fragmented bottling system is larger, accounting for 55% of the market share.
Varun Beverages is a beverage business. It operates a PepsiCo franchise. The firm manufactures and sells carbonated soft drinks (CSDs), as well as a wide variety of non-carbonated beverages (NCBs), including bottled drinking water offered under PepsiCo brands.
