Photo Credit: Shah Junaid/VCCircle

PE-backed Varun Beverages bags $49 mn from anchor investors

26 October, 2016

Ravi Jaipuria-controlled Varun Beverages Ltd that is seeking a market valuation of up to Rs 8,000 crore ($1.2 billion) in its initial public offering (IPO) has raised Rs 27 crore ($49 million) from a clutch of anchor investors on Tuesday.

The anchor investors include a bunch of mutual funds besides foreign portfolio investors and Abu Dhabi Investment Authority (ADIA), the sovereign fund representing the emirate of Abu Dhabi.

The firm opens its IPO on Wednesday in which it aims to raise up to Rs 667.5 crore through a fresh issue of 15 million shares. In addition, there is an offer for sale of around 10 million shares by the promoters that could fetch them up to Rs 445 crore.

The anchor investors picked shares at the upper end of the Rs 440-445 a share price band.

Varun Beverages had filed its draft red herring prospectus in June and got regulatory approval for the issue last month.

Kotak Mahindra Capital, Axis Capital, CLSA and YES Securities are the bankers to the issue.

The firm counts AION Global, the special situation investment firm jointly run by Apollo Global and ICICI Venture, and Standard Chartered Private Equity as investors. StanChart PE originally invested in 2011 while AION Global came in last year. AION Global bought some securities held by StanChart PE and pumped in Rs 300 crore afresh through subscription to non-convertible debentures in the company.

Both PE firms are retaining their stake. After the issue, StanChart PE will have a 7.5% stake in the firm while AION will hold 4%.

Varun Beverages is one of the largest franchisees in the world (outside the US) of carbonated as well as non-carbonated beverages sold under brands owned by PepsiCo. It produces and distributes products such as Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Tropicana Slice, Nimbooz as well as packaged drinking water under the brand Aquafina. In addition, it has the franchise for Ole brand of PepsiCo products in Sri Lanka.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
Varun Beverages’ IPO covered 33% on day 1

Varun Beverages’ IPO covered 33% on day 1

TEAM VCC 10 months ago
The initial public offering (IPO) of Ravi Jaipuria-controlled Varun Beverages Ltd that is seeking a market valuation of up to Rs 8,000 crore ($1.2 billion)...
PepsiCo bottler Varun Beverages climbs after weak debut

PepsiCo bottler Varun Beverages climbs after weak debut

TEAM VCC 10 months ago
Varun Beverages Ltd, the largest bottler for PepsiCo in India, made a tepid debut on the stock markets on Tuesday with its shares listing at...
PepsiCo bottler Varun Beverages’ IPO sails through on second day

PepsiCo bottler Varun Beverages’ IPO sails through on second day

TEAM VCC 10 months ago
The initial public offering (IPO) of Ravi Jaipuria-controlled Varun Beverages Ltd, the largest bottler for PepsiCo in India, was fully subscribed on the second day...
No Comments

PE-backed Varun Beverages bags $49 mn from anchor investors

Powered by WordPress.com VIP