Varun Beverages board gives nod to Rs 7,500 crore QIP

Varun Beverages, the starring bottler of beverage large PepsiCo, has plans to rise Rs 7,500 crore from the marketplace done the Qualified Institutions Placement (QIP) way to money its maturation plans. The committee of the institution successful a gathering held connected Wednesday approved the connection for "raising of Capital done QIP for an magnitude not exceeding Rs 7,500 crore", according to a regulatory filing by the company.

Varun Beverages Ltd (VBL), portion of RJ Corp, "to instrumentality its maturation plans and to fortify its equilibrium sheet, intends to rise superior done QIP and inter alia utilise the proceeds from this fundraise," it added.

The money of Rs 7,500 crore would beryllium raised successful "one oregon much tranches" and would beryllium "subject to receipt of support of equity shareholders of the company", it added.

The proceeds from this fundraising would beryllium utilised successful "making investments successful subsidiaries, associated ventures oregon associates" oregon to "fund the maturation of existing businesses including expanding merchandise portfolio, entering into caller territories and making strategical acquisitions".

This volition besides assistance successful "pre-payment oregon repayment" of debts and successful wide firm purposes, VBL said successful a regulatory filing.

For this, VBL proposes to contented equity shares of the look worth of Rs 2 each nether QIP to organization buyers to rise Rs 7,500 crore astatine a terms including a premium. A minimum of 10 per cent of the shares nether QIP would beryllium allotted to communal funds.

Currently promoters Jaipuria household holds a 62.66 per cent successful the company.

Shares of VBL connected Wednesday settled astatine Rs 592.50 connected BSE, up 0.44 per cent.

Its 52-week precocious was astatine Rs 682.84 connected July 29, 2024, and 52-week debased was astatine Rs 331.28 connected October 26, 2023. In September 2024, the institution announced banal divided successful the ratio of 2:5.

Earlier successful its yearly study VBL had said it is expanding its accumulation capacities successful the foodstuff and value-added dairy merchandise segments successful 2024.

Besides, VBL is besides strengthening its organisation web and chilling infrastructure, which is indispensable to heighten beingness successful the existing and under-penetrated markets, it had said.

Promoted by Jaipuria family, VBL accounts for 90 per cent of PepsiCo's beverage income measurement successful India.

VBL's relation with PepsiCo is implicit 3 decades old. It is expanding the fig of licensed territories and sub-territories to grow its business.

Last December, VBL announced the acquisition of South Africa-based Beverage Company (Bevco) on with its wholly-owned subsidiaries astatine an endeavor worth of Rs 1,320 crore, which volition assistance it grow its geographical footprint successful the African market.

Bevco holds franchise rights from PepsiCo successful South Africa, Lesotho and Eswatini.

Currently, VBL's operations span six countries crossed the Indian sub-continent and Africa, collectively serving implicit 1.4 cardinal customers. However, 80 per cent of its gross originates from its India business.

VBL, which follows the calendar arsenic a fiscal year, had successful 2023, its nett revenues astatine Rs 16,042.58 crore, up 21.8 per cent.

In the latest June 4th VBL had reported a 28.3 per cent gross maturation to Rs 7,196.86 crore and its nett was up 25.5 per cent to Rs 1,261.83 crore.