Varun Beverages acquires 9.8% stake in UP-based solar power producer Lone Cypress Ventures

The carbonated soft drinks maker said that it has invested 9.80% of equity share capital (5.68% on fully diluted basis) of Lone Cypress Ventures, a special purpose vehicle (SPV), for a cash consideration of Rs 3.15 crore.

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.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)