Jubilant FoodWorks' shares have seen a decline of over 3% following news that its promoters, the Jubilant Bhartia Group, have acquired a 40% stake in Hindustan Coca-Cola Beverages (HCCB), the largest Coca-Cola bottler in India.

Despite this drop, the stock price remains near its 52-week high. As of now, Jubilant FoodWorks’ market capitalization stands at Rs 45,150 crore, with a price-to-earnings (P/E) ratio of 115.22.

The stock is trading at Rs 687.75, just a few points below its 52-week high of Rs 715.45, achieved in September 2024. It also remains significantly higher than its 52-week low of Rs 421.05, which was recorded in March 2024.

In terms of performance, Jubilant FoodWorks has shown positive growth in recent months. Over the past 5 days, the stock has gained 4.18%, and in the past 6 months, it has seen an impressive rise of 28.34%.

The company went public on February 8, 2010, and its current stock performance reflects a period of sustained growth, although it is under pressure following the announcement of the new acquisition.

The acquisition deal involves the Jubilant Bhartia Group acquiring a 40% stake in Hindustan Coca-Cola Beverages (HCCB), the Indian bottling arm of The Coca-Cola Company.

While the exact financial details of the transaction have not been disclosed, reports estimate the deal's value at approximately Rs 12,500 crore, placing a valuation of Rs 31,250 crore on HCCB. The Coca-Cola Company confirmed the deal in an official statement, emphasizing the strategic benefits of the collaboration.

Henrique Braun, President of International Development at The Coca-Cola Company, highlighted the significant role the Jubilant Bhartia Group will play in expanding the company's footprint in India.

Shyam S. Bhartia and Hari S. Bhartia, founders of the Jubilant Bhartia Group, described the investment as a perfect addition to their diverse portfolio.

They expressed confidence that the partnership would provide ample opportunities to grow the business and offer more consumers in India access to Coca-Cola’s extensive range of brands. However, the deal is still pending regulatory approval.

Rothschild & Co is serving as the exclusive financial advisor to The Coca-Cola Company for this transaction, which could potentially reshape the beverage industry in India.