The SPV has been incorporated under the Companies Act, 2013 in 2016 by Sunsource Energy for the purposes of developing a captive generating solar power plant and supplying solar power to consumers in Uttar Pradesh, India. The turnover of the SPV for the FY 21-22 was Rs 39.17 lakh.

Offering the investment rationale, Varun Beverages stated that it intends to obtain solar power (generation and supply) from SPV for its facilities located in Sandila, Uttar Pradesh and Kosi, Uttar Pradesh. Solar power is environment friendly (green energy) with the added advantage of reduction in the power cost of the respective facilities.

Accordingly, as per the Electricity Act, 2003, the Company, being captive user, is required to make investment in the SPV.

Varun Beverages has acquired 31,50,000 equity shares of the SPV for a cash consideration of Rs 3.15 crore.

Varun Beverages is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world (outside USA).

The company's consolidated net profit zoomed 150.15% to Rs 81.52 crore in Q4 CY22 from Rs 32.59 crore reported in Q4 CY21. Revenue from operations (net of excise / GST) stood at Rs 2,214.23 crore in Q4 CY22, registering a growth of 27.7% as against Rs 1,734.34 crore posted in the corresponding quarter previous year.

The scrip shed 0.57% to currently trade at Rs 1305.05 on the BSE.

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Varun Beverages has invested 9.80% of Equity Share Capital (5.68% on fully diluted basis) of Lone Cypress Ventures, a special purpose vehicle inter-alia engaged to supply solar power to consumers in the state of Uttar Pradesh.

The company intends to obtain solar power (generation and supply) from SPV for its facilities located in Sandila, Uttar Pradesh and Kosi, Uttar Pradesh. Solar power is environment friendly (green energy) with the added advantage of reduction in the power cost of the respective facilities.

Accordingly, as per the Electricity Act, 2003, the company, being captive user, is required to make investment in the SPV.

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Varun Beverages Ltd gained for a third straight session today. The stock is quoting at Rs 1331.05, up 1.8% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is down around 0.04% on the day, quoting at 17836.75. The Sensex is at 60682.3, down 0.02%. Varun Beverages Ltd has risen around 7.62% in last one month.

Meanwhile, Nifty Financial Services index of which Varun Beverages Ltd is a constituent, has risen around 3.09% in last one month and is currently quoting at 45501.2, up 0.28% on the day. The volume in the stock stood at 11.97 lakh shares today, compared to the daily average of 14.76 lakh shares in last one month.

The PE of the stock is 66.86 based on TTM earnings ending December 22.

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Varun Beverages has allotted 6912 equity shares under ESOS on 20 February 2023. Consequent to the aforesaid allotment, the paid-up share capital of the Company is increased from 64,95,51,120 equity shares to 64,95,58,032 equity shares having face value of Rs. 10/- each.

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