Varun Beverages to consider bonus issue

In a filing to the exchanges, Varun Beverages reported that the company’s board of directors will consider the proposal for declaration of bonus issue of equity shares. As a result, the company’s scrip jumped by more than 6 per cent on Thursday.  

The meeting of the board of directors to consider the proposal for declaration of bonus issue as well to consider & approve the company’s unaudited financial results of both on a standalone and consolidated basis for the quarter ended March 31, 2021, will be held on May 3, 2021.  

The company has launched various new products in recent quarters to propel demand growth. It has launched lemon fruit juice-based drink under 'Mountain Dew' brand in February 2021.   

Given the fact that beverages are an important business category with demand being on the go, Varun Beverages is expected to further see positive business growth, going forward. Also, favourable raw material prices have helped the company to improve gross margins.  

Varun Beverages Limited is engaged in the manufacturing, selling, bottling & distribution of beverages of Pepsi brand. It produces and distributes a range of carbonated soft drinks (CSDs) as well as a selection of non-carbonated beverages (NCBs), including packaged drinking water. PepsiCo CSD brand was produced & sold by the company including Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, etc.