Varun Beverages board at its meeting held on October 9 has approved raising of funds of up to Rs 7,500 crore through a Qualified Institutions Placement (QIP). VBL accounts for 90 per cent of PepsiCo's beverage sales volume in India.
"Notice of Postal Ballot for seeking approval of Equity Shareholders in respect of raising of funds by way of issuance of Equity Shares through QIP," the PepsiCo bottler said in an exchange filing.
The fund would be raised in "one or more tranches" and would be "subject to receipt of approval of equity shareholders of the company" through postal ballot, it added.
The proceeds from this fundraise would be utilised in "making investments in subsidiaries, joint ventures or associates" or to "fund the growth of existing businesses including expanding product portfolio, entering into new territories and making strategic acquisitions".
This will also help in "Pre-payment or repayment" of debts and in general corporate purposes, Varun Beverages Ltd (VBL) said in a regulatory filing.
Shares of Varun Beverages were trading flat at around 10.15 AM to quote at Rs 595.65 per share on the NSE, up marginally by 0.96 percent.
Varun Beverages Ltd. (VBL), one of the largest franchise bottlers for PepsiCo globally, posted a revenue of Rs 7,197 crore in the April to June quarter, marking a 28 percent growth compared to the same period last year. VBL operates on a January-December calendar year.
The company's net profit for the quarter increased by 26 percent to Rs 1,252.6 crore, up from Rs 994 crore in the corresponding period a year ago.
In trade today, the stock touched an intraday high of Rs 606.2 per share on the NSE, up 2.75 percent. The scrip has been gaining for the last two days and has risen 10.21 percent in the period.
The stock rose close to 20 percent in 2024 so far and was 395.34 percent in the last three years, according to data available on the BSE exchange.
The current face value of each stock of the company is Rs 2 from an earlier Rs 5. In September 2024, the company announced stock split in the ratio 5:2.
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