Varun Beverages plans to raise ₹7,500 crore through Qualified Institutions Placement (QIP) to support its expansion plans. The company’s board approved the proposal during a meeting, with funds to be raised in multiple tranches, subject to shareholder approval via a postal ballot, the company said.
The funds raised will be directed toward making investments in subsidiaries, joint ventures, or associates. Additionally, the proceeds will support the growth of existing businesses, including expanding the product portfolio, exploring new markets, and making strategic acquisitions to strengthen Varun Beverages’ market position.
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Varun Beverages also plans to utilise a portion of the funds for pre-payment or repayment of outstanding debts, which will improve the company’s financial health. The remaining amount will be allocated for general corporate purposes, helping to drive overall business development.
This fundraising effort comes as part of the company’s broader growth strategy to enhance its market presence. Varun Beverages is PepsiCo’s leading bottler in India, accounting for 90% of the beverage giant’s sales volume within the country, highlighting its critical role in PepsiCo’s operations.
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With a strong focus on expansion, Varun Beverages aims to solidify its leadership in the Indian beverage market and capitalise on new growth opportunities. This QIP will provide the financial flexibility needed to achieve its ambitious goals and further enhance its business footprint.
