Shares of Jubilant FoodWorks rose 2.26% to Rs 442.05 in morning trade on April 18 after Coca-Cola India acquired a 15% stake in the company’s affiliate Hashtag Loyalty.

Hashtag has raised funds at a pre-money valuation of Rs 104.68 crore, Jubilant FoodWorks said in a post-listing regulatory filing dated April 17.

Hashtag Loyalty is an associate company of the country’s leading fast food chain operator, Jubilant FoodWorks Ltd, which owns key franchises for brands such as Domino’s Pizza, Dunkin’ and Popeyes. Hashtag owns the food ordering platform Thrive.

“Hashtag Loyalty has entered into a securities subscription agreement with Coca-Cola India (new investor), under which the new investor has acquired a 15% stake in Hashtag,” the regulatory filing said.

After the deal, Jubilant FoodWork’s stake in Hashtag fell from 35% to 29.75%.

Coca-Cola’s tie-up with rivals Zomato and Swiggy benefits the beverage maker in increasing consumer engagement, as Thrive has partnerships with more than 12,000 restaurants across India.

Other investors backing Hashtag include thinQbate and Ahimsa Capital.

Shares of Jubilant FoodWorks are down about 12% year-to-date, while Nifty shares are down 3%. On a one-year basis, the stock is down 22%.

In a recent note, Citi reiterated its ‘buy’ call on Jubilant FoodWorks and set a price target of Rs 619 per share, representing an upside of 40% from current levels.

According to Citi’s research, Jubilant Foodworks is well-positioned to benefit from market tailwinds, faster store expansion and digital investments. It said the recent pullback in share prices presents a buying opportunity for long-term investors.

ICICI Securities also maintained its “buy” rating on Jubilant FoodWorks due to the expansion of the Popeyes chain, value-for-money products and delivery. The stock has a target price of Rs 630.