Varun Beverages share price down 2% even after Gorakhpur unit starts production

Varun Beverages share price was down 2 percent in the opening trade on April 15 even after the company started commercial production at Gorakhpur facility.

At 9.22am, Varun Beverages was quoting at Rs 1,356.00, down Rs 30.45, or 2.20 percent, on the BSE.

It started “commercial production of carbonated soft drinks and energy drinks (juices and value-added dairy products to be started) at its production facility at Gorakhpur, Uttar Pradesh", the company said in its release.

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The company’s board meeting held on April 10, approved to invest up to 14 percent of equity share capital of Huoban Energy 11 Private Limited, a special purpose vehicle engaged to supply solar power to consumers in the state of Maharashtra.

The company invest up to 14 percent of equity share capital of Aspirative Creative Ventures Private Limited, a special purpose vehicle engaged to supply solar power to consumers in the state of Uttar Pradesh.

The total cost of acquisition is Rs 5.14 crore and is expected to get completed on or before December 9, 2024.

The share touched a 52-week high of Rs 1,560.30 on February 26, 2024 and a 52-week low of Rs 687.50 April 20, 2023.The stock is trading 13.09 percent below its 52-week high and 97.24 percent above its 52-week low. The share has gained 61 percent in the last nine months.