Varun Beverages shares hit 52-week low, trading below Rs 500 for ninth session; here's why 

Varun Beverages Ltd shares were trading below Rs 500 mark for the ninth straight session on Thursday even as the leading bottler of PepsiCo announced an extension of its planned acquisition of SBC Beverages Ghana Ltd from Ghana Bottling Company Ltd for $15.06 million (Rs 127.1 crore). 

The stock slipped 7.65% to a fresh 52-week low of Rs 439.95 today against the previous close of Rs 476.40. Before today's fall, Varun Beverages stock recorded a 52-week low of Rs 454.20 on February 19 this year. Market cap of the firm fell to Rs 1.50 lakh crore. 

A total of 3.24 lakh shares of the firm changed hands, amounting to a turnover of Rs 14.63 crore. The multibagger stock fell 24% in a year but zoomed 73.20% in two years. 

In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 36, signaling the stock is trading neither in the overbought nor in the oversold zone.

Varun Beverages shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 150 day and 200 day moving averages. The stock has a beta of 0.8, indicating very low volatility in a year. 

The transaction was initially set for completion by February 28, 2025. Now it has been extended to March 31, 2025, subject to regulatory approvals, including from PepsiCo Inc.

"...we would like to update that consummation of the aforesaid transaction is extended up to March 31, 2025, instead of February 28, 2025 (as intimated earlier on November 12, 2024)," Varun Beverages said in a regulatory filing.

On November 13, 2024, Varun Beverages Ltd (VBL) inked a share purchase agreement for 100% shares of SBC Beverages Ghana at $ 15.06 million (?127.1 crore). The company estimated that the transaction would be completed by the end of February 2025.

Varun Beverages is a beverage company. It operates franchisee of PepsiCo. The company produces and distributes a range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.