Varun Beverages announces record date for 2:5 stock split; shares rise 2%

PepsiCo's bottling franchise partner, Varun Beverages, announced Monday that September 12 will be the record date for determining eligible shareholders for its 2:5 stock split. Following this announcement, the company’s shares surged 2% to a day’s high of Rs 1,533.50.

“The Board of Directors fixed Thursday, September 12, 2024 as the “Record Date” for determining entitlement of Equity Shareholders for the purpose of sub-division / split of existing Equity Shares of the Company, such that each Equity Share having face value of Rs. 5/- (Rupees Five only) each fully paid-up, be subdivided/split into such number of Equity Shares having face value of Rs. 2/- (Rupees Two only) each fully paid-up,” the company said in its filing to exchanges.

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The stock split means that the company’s authorized share capital of Rs 1,000 crore, initially divided into 2,000 crore shares with a face value of Rs 5 each, will now be divided into 500 crore shares with a face value of Rs 2 each.

Prior to this, Varun Beverages split the face value of its shares from Rs 10 to Rs 5 in June 2023.

For the second quarter ended June 2024, the company reported a profit after tax (PAT) of Rs 1,261.83 crore, an increase of 26% year-over-year (YoY). Revenue grew by 28% YoY to Rs 7,196.86 crore, up from Rs 5,611.40 crore in the same quarter of the previous year.

The shares of Varun Beverages have advanced 68% in the last year and risen 23% on a year-to-date (YTD) basis.

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