Varun Beverages Share Price: The share price of Varun Beverages, one of the world’s largest franchisees of PepsiCo outside the US, rose to a 52-week high on Friday (May 22) after the company extended its contract with PepsiCo.
As of 10:50 am, the share price of the BSE 100 stock was up 1.3 per cent, or Rs 6.7, to trade at Rs 527. Earlier in the session, the stock touched a 52-week high of Rs 538, reflecting an upside of 3.4 per cent. (Varun Beverages Stock Price)
Varun Beverages Extends Agreement with PepsiCo
In an exchange filing dated May 21, the company announced a significant revision to its long-standing agreement with PepsiCo and its affiliates.
Varun Beverages and PepsiCo entered into a revised Exclusive Bottling Appointment (EBA) and Trademark License Agreement for India. The updated agreement extends the partnership by an additional decade, moving the term end date from April 30, 2039, to April 30, 2049.
The revision also removes a major restriction from the earlier agreement. Previously, VBL was required to operate solely as a Special Purpose Vehicle (SPV) dedicated to PepsiCo’s business in India. Under the new terms, this limitation has been lifted, giving VBL greater operational flexibility while continuing to serve as PepsiCo’s exclusive bottler in the region.
Over the last one week, the stock gained 24.10 points, reflecting a 4.79 per cent increase. In two weeks, it rose by 18.60 points, or 3.65 per cent, while over one month, the stock advanced by 32.70 points, marking a 6.61 per cent gain. The three-month performance was particularly impressive, with an increase of 73.75 points, or 16.25 per cent. On a year-to-date (YTD) basis, the stock gained 36.10 points, equivalent to 7.34 per cent.
Over the medium term, the stock delivered solid returns, gaining 80.10 points, or 17.90 per cent, in the last six months, and 57.30 points, or 12.18 per cent, over one year. However, during the two-year period, the stock recorded a decline of 77.99 points, resulting in a negative return of 12.88 per cent.
Despite this dip, the long-term trend remains highly positive, as the stock surged by 210.85 points, or 66.56 per cent, over three years and delivered an exceptional gain of 439.44 points, translating into a massive 498.17 per cent return over the last five years.
(Disclaimer: The above article is meant for informational purposes only and should not be considered investment advice. ET NOW DIGITAL advises readers to consult their financial advisors before making any financial decisions.)
