Varun Beverage plans to raise Rs. 1,500 crore

The board of directors of Varun Beverage approved fundraising of upto Rs. 1,500 crore through Qualified Institutions Placement (QIP) but its subject to the approval of shareholders in the Annual General Meeting which is to be held on April 17, 2019. 

Varun Beverage has increased its market share in the Indian soft beverage market, with its share in PepsiCo India revenues rising to 85 per cent from 51 per cent in the previous year. 

Recently, Varun Beverage has acquired PepsiCo India's franchised territories in parts of Maharashtra (14 districts), parts of Karnataka (13 districts) and parts of Madhya Pradesh (3 districts). 

Further, it has entered into a binding agreement with PepsiCo India Holdings Private Limited to acquire franchise rights in South and West regions from PepsiCo for a national bottling, sales and distribution footprint in 7 states viz Gujarat, parts of Maharashtra, parts of Karnataka, Telangana, parts of Andhra Pradesh, Kerala and Tamil Nadu and 5 Union Territories viz Daman & Diu, Dadra & Nagar Haveli, Andaman & Nicobar Islands, Lakshadweep and Puducherry (except Yanam). Pepsi’s market share in South & West territories is much lower at 25 per cent compared to 40 per cent in North & East. 

This capital is likely to be utilised to fund the recent acquisitions.