Varun Beverages said that its board has approved a proposal to raise funds by way of issuance of equity shares for an aggregate amount not exceeding Rs 7,500 crore, in one or more tranches, through qualified institutions placement (QIP) route.
The fund raising proposal is subject to the approval of equity shareholders of the company.
The fund raise would be used for making investments in subsidiaries, joint ventures or associates by way of equity, preference capital, or debt, or to fund the growth of existing businesses including expanding product portfolio, entering into new territories and making strategic acquisitions; pre-payment and / or repayment in full or in part of debts of the company and /or its subsidiaries; and general corporate purposes.
Varun Beverages is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world (outside USA). The company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. As on date, VBL has been granted franchises for various PepsiCo products across 27 States and 7 Union Territories in India. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.
The company had reported 26.04% jump in consolidated net profit to Rs 1,252.60 crore in Q2 CY24 as compared with Rs 993.81 crore posted in Q2 CY23. Revenue from operations (excluding excise duty) surged 28.25% YoY to Rs 7,196.86 crore in second quarter of 2024.
The scrip was up 0.04% to currently trade at Rs 590.15 on the BSE.
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