Shares of Varun Beverages slipped 2% on 15 April despite the company announcing beginning commercial production at the Gorakhpur facility.

In its regulatory filing, the company said, “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.”

Varun Beverages’ Board of Directors, in a strategic move, approved plans to invest up to 14% of equity share capital in Huoban Energy 11 Private Limited, a special purpose vehicle (SPV) supplying solar power in Maharashtra.

The company will invest up to 14% in Aspirative Creative Ventures Private Limited, which is an SPV engaged to supply solar power to consumers in Uttar Pradesh.

This acquisition costs Rs 5.14 crore and is expected to be completed before 9 December 2024.

Varun Beverages’ shares have demonstrated a strong performance, with a return of approximately 48% in six months and 88% in the past year. The shares reached a 52-week high of Rs 1,561.95 on 26 February 2024 and a 52-week low of Rs 687.50 on 20 April 2023.

At 11:55 am, the shares of Varun beverages were trading 1.40% lower at Rs 1,366.40 on NSE.