Shares of Varun Beverages Ltd. rose the most in nearly three weeks on Thursday as the stock price adjusted for the 1:2 split.
The PepsiCo Inc.'s bottler had set June 15 as the record date or the cutoff for shareholders to be eligible. Investors who owned the stock as of June 14 delivery would have been eligible.
The ex-split date—when the stock trades at the adjusted price after the subdivision of securities—was also June 15. In case of Varun Beverages, a share of Rs 10 face value has been split into two of Rs 5 each.
The consumer goods company seeks to enhance the liquidity of its shares and to encourage the participation of small investors.
On May 2, the board of Varun Beverages decided to split its shares in the proportion of 1:2.
Shares of Varun Beverages Ltd. rose as much as 6.75%, the most since May 26, before paring gains to trade at a 3.43% high at Rs 1,011.9 apiece as of 10:33 a.m. That compares to a 0.01% advance in the NSE Nifty 50.
The average traded volume so far in the day stood at 1.6 times its monthly average. The relative strength index was at 61.
Of the 20 analysts tracking the company, 18 maintain a 'buy' rating and two recommend a 'hold' on the stock, as per Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 3.5%.
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