PepsiCo‘s leading bottler, Varun Beverages, plans to raise INR 7,500 crore from the market through a Qualified Institutions Placement (QIP) to finance its growth initiatives. In͏͏ a͏͏ board͏͏ meeting͏͏ held͏͏ on͏͏ Wednesday,͏͏ the͏͏ company͏͏ approved͏͏ the͏͏ proposal͏͏ to͏͏ “raise͏͏ funds͏͏ through͏͏ the͏͏ issuance͏͏ of͏͏ equity͏͏ shares͏͏ for͏͏ an͏͏ aggregate͏͏ amount͏͏ not͏͏ exceeding͏͏ INR͏͏ 7,500͏͏ crore”͏͏ via͏͏ QIP,͏͏ according͏͏ to͏͏ a͏͏ regulatory͏͏ filing.
The͏͏ funds͏͏ will͏͏ be͏͏ raised͏͏ in͏͏ “one͏͏ or͏͏ more͏͏ tranches”͏͏ and͏͏ will͏͏ require͏͏ the͏͏ approval͏͏ of͏͏ the͏͏ company’s͏͏ equity͏͏ shareholders͏͏ via͏͏ a͏͏ postal͏͏ ballot,͏͏ it͏͏ added.
Continue͏͏ Exploring:͏͏ Varun Beverages eyes͏͏ untapped͏͏ markets͏͏ with͏͏ focus͏͏ on͏͏ production͏͏ capacity͏͏ and͏͏ distribution͏͏ expansion
Funds͏͏ to͏͏ Support͏͏ Growth͏͏ Initiatives:
The͏͏ proceeds͏͏ from͏͏ this͏͏ fundraising͏͏ will͏͏ be͏͏ used͏͏ for͏͏ “investments͏͏ in͏͏ subsidiaries,͏͏ joint͏͏ ventures,͏͏ or͏͏ associates”͏͏ and͏͏ to͏͏ “support͏͏ the͏͏ growth͏͏ of͏͏ existing͏͏ businesses,͏͏ including͏͏ expanding͏͏ the͏͏ product͏͏ portfolio,͏͏ entering͏͏ new͏͏ markets,͏͏ and͏͏ making͏͏ strategic͏͏ acquisitions.”
This͏͏ will͏͏ also͏͏ facilitate͏͏ the͏͏ “pre-payment͏͏ or͏͏ repayment”͏͏ of͏͏ debts͏͏ and͏͏ support͏͏ general͏͏ corporate͏͏ purposes,͏͏ Varun͏͏ Beverages͏͏ Ltd͏͏ (VBL)͏͏ stated͏͏ in͏͏ a͏͏ regulatory͏͏ filing.
VBL͏͏ accounts͏͏ for͏͏ 90͏͏ percent͏͏ of͏͏ PepsiCo’s͏͏ beverage͏͏ sales͏͏ volume͏͏ in͏͏ India.
