Shares of Jubilant FoodWorks, a leading food service company, surged 3.8 percent on Tuesday, April 18 after Coca-Cola India acquired a 15 percent stake in its associate company Hashtag Loyalty for ₹104.68 crore.
Coca-Cola India has entered into a share subscription agreement with Hashtag Loyalty, which has raised the capital at a pre-money valuation of ₹104.68 crore, the company reported through an official filing.
During Tuesday’s trade, the stock opened on at a price of Rs. 434.05 per share against the previous close of Rs. 431 per share and rallied further to touch an intraday high of Rs. 447.75. At 10:15 a.m., it was trading at Rs. 441.70 apiece, up by 2.48 percent on the NSE.
The stock touched a 52-week-high of Rs. 652.35 on October 06, 2022 and a 52-week-low of Rs. 412.10 on March 20, 2023, indicating that at the current levels, the stock is trading 7.18 percent above its 52-week low and 32.2 percent below its 52 week high.
The stock has shown a positive growth of a little over 1 percent in the past one month. However, the shares of the bank have declined almost 27 percent in the last six months. It has returned nearly 80 percent to its shareholders in the last five years.
Accordingly, Jubilant FoodWorks has seen its ownership reduce from 35 percent to 29.75 percent after Coca-Cola acquired a 15 percent stake.
"As part of the transaction, the company has entered into a shareholders agreement dated April 17, 2023, with Hashtag, New Investor, and other existing investors of Hashtag and there is no adversarial change in the rights granted to the company as enunciated in the stock exchange disclosure by the company dated October 27, 2021, at the time of acquisition of the initial stake," the official filing stated.
Jubilant FoodWorks Limited is an India-based food service company and is engaged in retail sales of food through international and home-grown brands addressing different food market segments. Its international brands include Domino’s Pizza, Dunkin’ Donuts and Popeyes and operate approximately 1,500 outlets for Domino's Pizza, Dunkin' Donuts and Hong's Kitchen.
According to a MintGenie poll, an average of 31 analysts have a ‘BUY’ call on the stock.