Varun Beverages Ltd, the world’s second largest PepsiCo Inc. bottler, on Wednesday said its Rs1,100 crore initial public offering (IPO) will open on October 26. The company has set a price band of Rs 440-445 per share for the IPO, which will close on October 28.
The RJ Corp-promoted company said it would issue 1.5 crore fresh shares, while existing promoters Varun Jaipuria and Ravi Kant Jaipuria & Sons will offload 50 lakh each shares via the offer for sale.
The beverages manufacturer has hired Kotak Mahindra Capital Co. Ltd, Axis Capital Ltd and CLSA India Pvt. Ltd and YES Securities (India) Ltd to manage the IPO.
READ MORE: Varun Beverages files draft prospectus for IPO
The company will use proceeds from the IPO to repay part of its Rs1,700 crore debt, taken on to fuel its expansion in the last few years.
At the upper limit of the price band, the IPO would fetch a total of Rs 1,112.50 crore, representing 13.7 per cent of the expanded capital, the terms showed. Accordingly, the company would command a market capitalisation of Rs 8,120 crore.
The producer and distributor of a wide range of carbonated soft drinks and packaged drinking water had filed a draft red herring prospectus with the Sebi on June 24.
The company operates 16 production facilities across five others in international-licensed territories. The company had an estimated aggregate annual production capacity of 3,438.38 million litres in India as of March 31.
Varun Beverages operates over 20 bottling plants for PepsiCo across India, South Asia and Africa. In addition, promoter RJ Corp is a franchisee for Yum Restaurants-owned KFC and Pizza Hut, UK coffee chain Costa Coffee and Singapore-based tea salon firm TWG. It also owns the South Indian restaurant chain Vaango and ice-cream brand Cream Bell.
The company will use proceeds from the IPO to repay part of its Rs1,700 crore debt, taken on to fuel its expansion in the last few years
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