Varun Beverages Acquires Additional 23% Stake In Jager Renewables Two For ₹7.05 Crore; Shares Fall 1.43%

Mumbai, March 11: Varun Beverages Limited disclosed on Wednesday that its Investment and Borrowing Committee approved the acquisition of an additional 23% equity stake in Jager Renewables Two Private Limited for ₹7.05 crore to secure solar power for captive consumption. Shares of the company declined 1.43% to ₹430.25 as of 3:30 pm IST on March 11, 2026, according to exchange data.

Varun Beverages Expands Solar Power Investment Through Captive Arrangement

The board committee of Varun Beverages Limited approved the purchase of 70,51,150 equity shares of Jager Renewables Two Private Limited, each with a face value of ₹10, for a total consideration of ₹7.05 crore. The approval was granted during a meeting held on March 11, 2026 between 2:30 pm and 2:45 pm, according to the company’s disclosure submitted under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Jager Renewables Two Private Limited is a special purpose vehicle incorporated on June 6, 2024 under the group captive model envisaged in the Electricity Act, 2003. The entity is established to generate and supply solar power to consumers in Rajasthan.

Following completion of the latest transaction, Varun Beverages will hold 49% of the equity share capital of Jager. The company previously acquired a 26% stake through investments disclosed on September 3, 2025 and October 3, 2025.

According to the filing, the investment allows Varun Beverages to procure solar power for its manufacturing facilities located in Kota, Alwar, Jaipur, Jodhpur and Bhiwadi in Rajasthan. Management indicated that solar sourcing under the captive framework may reduce electricity costs while supporting environmental sustainability targets.

The company also approved issuance of a corporate guarantee on behalf of its subsidiary, The Beverage Company Proprietary Limited, which operates in South Africa.

The guarantee, amounting to ZAR 1,240 million, has been issued in favour of FirstRand Bank Limited through its Rand Merchant Bank division to secure a credit facility extended to the subsidiary. The guarantee remains valid until July 31,2026. The company stated in the disclosure that the promoter group has no interest in the transaction and that it was conducted at arm’s length.

Share Price Movement On March 11, 2026

Share price of Varun Beverages Limited closed lower in Tuesday’s trading session following the disclosure.

As of 3:30 pm IST on March 11, 2026, the stock traded at ₹430.25, down ₹6.25 or 1.43% compared with the previous close of ₹436.50, according to exchange data.

During the session, the stock opened at ₹437.90 and moved between an intraday high of ₹441.80 and a low of ₹430.00 before settling near the day’s bottom range.

Market capitalisation stood near ₹1.46 lakh crore at the close of trading. The stock currently trades at a price to earnings multiple of about 47.91 based on available exchange statistics.

Company Background

Varun Beverages Limited is one of the largest franchise bottlers of PepsiCo beverages globally outside the United States. The company manufactures and distributes carbonated soft drinks, packaged drinking water and other non carbonated beverages across multiple territories.

Its operations span India and several international markets including South Africa and other emerging regions. The company operates an extensive network of manufacturing plants and distribution infrastructure to supply beverages to retail, institutional and on premise customers.

In recent years, the company has increasingly evaluated renewable energy sourcing structures for its production facilities as part of cost optimisation and sustainability initiatives.

Conclusion

The additional stake acquisition strengthens Varun Beverages’ participation in a group captive renewable power structure intended to supply solar electricity to several of its Rajasthan facilities. With the investment completed, the company’s shareholding in Jager Renewables Two rises to 49%, aligning with captive user requirements under electricity regulations.

Alongside the renewable investment, the company has also extended a corporate guarantee to support financing arrangements for its South African subsidiary. The market reaction remained modest, with the stock closing marginally lower on March 11, 2026.

Source;

• https://www.nseindia.com/get-quote/equity/VBL/Varun-Beverages-Limited
• https://nsearchives.nseindia.com/corporate/VBL_11032026145333_Outcome.pdf