Varun Beverages Shares Extend Gains As Stock Trades Ex-Split
In the last two sessions, the stock has risen 8.5%.
Shares of Varun Beverages Ltd. extended gains for the second consecutive session on the record date for its stock split. Fully paid-up shares of face value of Rs 5 apiece will be split into shares with a face value of Rs 2 per share.
The rationale behind the split is to enhance liquidity of the company's equity shares and to encourage participation of small investors by making equity shares of the company more attractive to invest, it had said in an exchange filing.
Post the split, the increase in the company's authorised equity share capital is from 200 crore to 500 crore shares and issued, subscribed and paid-up equity share capital is seeing an increase from 129.9 crore shares to 324.9 crore shares.
In the last two sessions, the stock has risen 8.5%.
Shares of the company rose as much as 5.70% before paring some gains to trade 5.4% higher at Rs 662.95 apiece, as of 10:04 a.m. This compares to a 0.4% advance in the NSE Nifty 50.
The stock has risen 34% year-to-date and 75.27% in the last 12 months. Total traded volume on NSE so far in the day stood at 0.54 times its 30-day average. The relative strength index was at 64.87.
Of the 21 analysts tracking the company, 18 maintain a 'buy' rating and three recommend a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 7.5%.
