The IPO received bids for 3.21 crore shares
The initial public offer (IPO) of Varun Beverages received bids for 3.21 crore shares compared with 1.76 crore shares on offer, on the last day of bidding for the IPO today, 28 October 2016. The IPO was subscribed 1.82 times, data showed at 16:45 IST on the National Stock Exchange of India (NSE). The issue comprises fresh offer of 1.5 crore shares. The issue also comprises of offer for sale of 1 crore shares by promoters. The price band for the IPO has been fixed at Rs 440 to Rs 445 per share.
Earlier, the company has raised Rs 327.07 crore by selling 73.50 lakh shares to a slew of anchor investors ahead of the opening of the IPO. The shares were allotted to the anchor investors at Rs 445 per share, the top end of the Rs 440 to Rs 445 per share price band for the IPO.
The issue proceeds accruing to the company will be used for prepayment or scheduled repayment of a portion of outstanding indebtedness availed by the company and rest for general corporate purposes.
Promoted by Ravi Kant Jaipuria, Varun Beverages is one of the largest franchisee in the world (outside USA) of carbonated soft drinks (CSD) and noncarbonated beverages (NCB) sold under trademarks owned by PepsiCo. It produces and distributes a wide range of CSD as well as a large selection of NCB including packaged drinking water.
On a consolidated basis, Varun Beverages reported a 22.09% rise in net profit at Rs 213.50 crore on 13.34% growth in net sales to Rs 2529.70 crore in the six months ended June 2016 over the corresponding previous period.
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