Varun Beverages to acquire rights from PepsiCo India; stock surges 10%

The stock surged 10% to Rs 589, also its 52-week high on the BSE, on back of heavy volumes

Varun Beverages surged 10% to Rs 589, also its 52-week high on the BSE in intra-day deal, after the company announced that its board has approved a proposal to sign an agreement to acquire PepsiCo India Holdings Pvt.'s previously franchised sub-territory in Jharkhand along with manufacturing facilities and franchise rights for Chhattisgarh.

“The board approved its intent to enter into a binding agreement to acquire PepsiCo India's previously franchised sub territory in the state of Jharkahand (20 districts) along with manufacturing facilities and franchisee rights for the state of Chhattisgarh, subject to the satisfactory completion of due diligence and final approval of PepsiCo,” Varun Beverages, a non-alcoholic beverages maker, said in a regulatory filing.

Upon completion of this acquisition, Company will be a franchisee for PepsiCo products across 20 States and 2 Union Territories of India, it added.

The counter has seen huge trading volumes with a combined 484,843 shares changed hands against an average sub 100,000 shares traded daily in past two weeks on the BSE and NSE.