Why Did Varun Beverages Shares Jump 18% To Hit All-Time High Today?

Shares of Varun Beverages have hit a record high of Rs 1,380 on Wednesday as they surged 18 per cent. In fact this year -Shares of Varun Beverages Ltd have recovered 94% from their 52-week low this year. The company said it will acquire South Africa's The Beverage Company Ltd for Rs 1,320 crore as it plans to expand its geographical footprint in Africa. VBL holds rights to manufacture, distribute and sell Pepsico products like carbonated soft drinks, fruit juice-based drinks, packaged drinking water, sports drinks and energy drinks for PepsiCo. It sells various PepsiCo products across 27 states and 7 union territories in India, making it the largest PepsiCo bottler in the country. In a separate development, Varun Beverages has also signed a Memorandum of Understanding (MoU) with Jharkhand government to set up a manufacturing plant in Patratu with a Rs 450 crore outlay. These recent triggers have le the stock to soar over 26% in the past three days. Not just that Varun Beverages stock is a multibagger with returns of 259% and 443% in two and three years, respectively.