Jubilant FoodWorks shares up by 6% on acquiring stakes in Fides Food:
Jubilant FoodWorks: It is one of the largest food delivery companies in India located in Noida, Uttar Pradesh. The company is a franchisee of both Domino’s Pizza and Dunkin Donuts across India. The company has also branches in Nepal, Sri Lanka, and Bangladesh. However, the company works under the subsidiary of Jubilant Bhartia Group. Initially, the company was also known as Domino’s Pizza India Pvt Limited and later changed into Jubilant FoodWorks Limited in 2009. The present Chairman of the company is Shyam S. Bhartia.
Meanwhile, on Monday, February 22nd, the shares of the company surged almost 5% in the stock market. The main reason for this is the company’s wholly-owned subsidiary Jubilant FoodWorks Netherlands B.V acquired Fides Food Systems.
Besides, the subsidiary company of Jubilant FoodWorks made a purchase agreement with Turkish Private Equity Fund II L.P for the acquisition of Fides Food Systems Co-operative U.A, which holds almost 32.81% stakes in DP Eurasia N.V.
Moreover, Jubilant FoodWorks signed as a guarantor for purchase agreement between the companies in connection with the investment obligations on Jubilant FoodWorks Netherlands B.V.
On the other side, DP Eurasia is one of the largest companies listed in London Stock Exchange PLC. However, it is also one of the master franchise of Domino’s Pizza in Turkey, Russia, Azerbaijan, and Georgia. DP Eurasia provides Pizza deliveries and takeaway/eat-in facilities at 771 stores in that almost 568 stores in Turkey, 190 stores in Russia, 9 stores in Azerbaijan, and 4 stores in Georgia.
Whereas the brokerage firm like Jefferies maintained a buy call on the stock with a target price of Rs. 3,050 per equity share. After acquiring 32.80% stakes in DP Eurasia, the company was at attractive valuations. Despite being the largest shareholder, there won’t be line-by-line consolidation.
However, the shares of Jubilant FoodWorks Limited reported a bullish trend in the stock market. It gained 176.50 points with a 5.98% increase and reached 3,127.75 INR. While in BSE, the company gained 174.95 points with a 5.93% increase and reached 3,126.00 INR.
Stock Market on February 22nd:
On Monday, both Sensex and Nifty continue their bearish trend in the stock market from the last four sessions of the market. The Sensex is trading below 49,800 levels and nifty trading below 15,000 levels in the stock market. The Sensex lost 1,145.44 points with a 2.25% decrease and reached 49,744.32 levels. While the nifty lost 306.05 points with a 2.04% decrease and reached 14,675.70 levels.
On the other side, the number of coronavirus cases in India on Monday, February 22nd reached 1,10,05,850 with almost 1,56,385 deaths.
In the border markets, the S&P BSE SmallCap index reported a bearish trend in the stock market on Monday. It lost 201.52 points with a 1.01% decrease and reached 19,661.89 levels. But, the S&P BSE MidCap lost 269.29 points with a 1.34% decrease and reached a 19,766.23 level. While the Nifty Bank lost 584.40 points with a 1.63% decrease and reached 35,257.20 level.
Top Gainers on February 22nd: Adani Ports, JSW Steel, Hindalco Industries, Tata Steel, and ONGC are the top gainers in today’s stock market.
Top Losers on February 22nd: M&M, Dr. Reddy’s Laboratories, Tech Mahindra, ITC, and IndusInd Bank are the top losers in today’s stock market.