Varun Beverages to raise upto Rs 7500 crore for expansion

9 Oct 2024 , 02:17 PM

Varun Beverages, the largest bottler of beverage giant PepsiCo, intends to collect Rs 7,500 crore from the market through Qualified Institutions Placement (QIP) to fund its expansion aspirations.

Varun Beverages Ltd (VBL) stated in a regulatory filing that this will also help with “pre-payment or repayment” of debts and other corporate purposes.

The company’s board of directors authorised the proposal for “raising funds by way of issuance of equity shares for an aggregate amount not exceeding Rs 7,500 crore” through QIP at a meeting on Wednesday, according to a regulatory filing.

The money would be raised in “one or more tranches” and “subject to receipt of approval of equity shareholders of the company” via postal poll, the statement noted.

The proceeds of this fundraise will be used to “make investments in subsidiaries, joint ventures, or associates” or to “fund the growth of existing businesses, including expanding product portfolio, entering new territories, and making strategic acquisitions.”

VBL accounts for 90% of PepsiCo’s beverage sales volume in India.

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