Bevco allotted 19.84 lakh ordinary shares to VBL and this fresh investment will result in an incremental share capital of 2.42 per cent
New Delhi: Varun Beverages Ltd (VBL), the leading bottler of PepsiCo, on Thursday announced to invest Rs 412 crore in its South African subsidiary Beverage Company Proprietary (Bevco).
Bevco, an existing subsidiary of our VBL, is engaged in the business of manufacturing and distribution of licensed products from PepsiCo and also own-branded non-alcoholic beverages in South Africa.
Besides Bevco also has franchise rights from PepsiCo in South Africa, Lesotho and Eswatini.
The company has “invested Rs 412.80 crore by subscribing Ordinary Shares of its subsidiary company i.e. The Beverage Company Proprietary Limited, South Africa,” VBL said in a regulatory filing.
Bevco allotted 19.84 lakh ordinary shares to VBL and this fresh investment will result in an incremental share capital of 2.42 per cent, according to a disclosure by the company.
It will also help “Bevco to repay its existing debt and strengthen balance sheet for business growth,” BVL added.
Promoted by the Jaipuria family, VBL accounts for 90 per cent of PepsiCo’s beverage sales volume in India.
In December 2023, VBL announced the acquisition of a South Africa-based Beverage Company (Bevco) along with its wholly-owned subsidiaries at an enterprise value of Rs 1,320 crore, which will help it expand its geographical footprint in the African market.
Shares of Varun Beverages Ltd on Thursday settled at Rs 648.40 on BSE, down 0.33 per cent from the previous close.
