Promoters of Varun Beverages, one of the largest franchisees of PepsiCo outside the US, are reportedly planning to sell shares worth INR 850 crore ($116 million) via a block deal on February 10th, as reported by CNBC Awaaz, citing sources.
Edelweiss/Nuvama is said to be the broker for the deal. The promoters are expected to offer a discount of 5-7% on the deal.
Varun Beverages is one of the largest franchisees of PepsiCo in the world outside the US. The company operates in several countries, including India, Nepal, Sri Lanka, and Morocco. It was founded in 1990 and is headquartered in New Delhi, India.
The company offers a range of products, including carbonated soft drinks, juices, and bottled water, through its extensive network of franchisees. It has a strong reputation for its quality products and customer service, and is known for its commitment to sustainable practices and community engagement initiatives.
Varun Beverages, which closed 2.90% lower at INR 1,272.30 per share on the Bombay Stock Exchange (BSE) on February 9th, recently reported a 150.20% YoY increase in its consolidated net profit, reaching INR 81.52 crore ($11 million) for the quarter ending December 31st, 2022.
The company also saw a 22.7% increase in revenue, reaching INR 2,257.20 crore ($307 million), and a 17.8% growth in sales volume, totaling 132 million cases. Additionally, its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 48.1% to INR 307.5 crore ($41 million) in Q4 of CY22 from INR 207.6 crore ($28 million) in Q4 of CY21.
This planned share sale by the promoters of Varun Beverages is a significant development for the company and the market will be closely watching the outcome.