The IPO of Varun Beverages, PepsiCo's largest franchise bottler, was oversubscribed on the second day of the offer today, riding on strong demand from institutional investors.
The IPO received bids for 1,78,72,173 shares against the total issue size of 1,76,50,000 shares, translating into a subscription of 1.01 times, data available with the NSE till 1830 hrs showed.
The qualified institutional buyers' (QIBs) portion has been oversubscribed 2.94 times, while non-institutional investors' quota was subscribed 21 per cent, sources said.
Retail investors category received 31 per cent subscription.
Varun Beverages has raised over Rs 327 crore by allotting shares to anchor investors.
The initial public offer of Varun Beverages, that entails sales of up to 2.5 crore shares, will close tomorrow.
The company has fixed the price band at Rs 440-445 per share. At the upper end, the company would raise Rs 1,112.50 crore through the offer.
Proceeds of the issue would be utilised for capital expenditure, repayment of loans and other general corporate purposes.
The issue is being managed by Kotak Mahindra Capital Company, Axis Capital, CLSA India and YES Securities (India) Ltd.
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