Varun Beverages, flush with funds after QIP, invests Rs 412.8 crore in South African subsidiary Bevco

VBL is among PepsiCo's largest bottling partners globally, and has delivered positive annual returns every single year since listing. The company recently raised funds to invest in subsidiaries, joint ventures, or associates and for existing businesses.

Varun Beverages (VBL) has invested Rs 412.8 crore in its South Africa subsidiary The Beverage Company (Bevco) by subscribing shares of the company, an exchange filing said on January 2.

The share purchase will ensure funds with Bevco, its subsidiary in South Africa, to repay existing debt and strengthen balance sheet for growth. Bevco manufactures and distributes PepsiCo-licensed as well as own-branded non-alcoholic beverages in the country. Bevco also has franchise rights from PepsiCo in Lesotho and Eswatini, aside of South Africa.

The stock is one of the top picks of Axis Securities for 2025. During 2024, shares of Varun Beverages delivered a return of 30%.

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VBL is among PepsiCo's largest bottling partners globally, and has delivered positive annual returns every single year since listing. The company recently raised funds to invest in subsidiaries, joint ventures, or associates and for existing businesses. VBL has been aiming to expand its product portfolio, and enter new territories, the company has said in the past.

In November, Varun Beverages had announced acquisition of two African companies, SBC Tanzania and SBC Beverages Ghana, for Rs 1,304 crore and Rs 127.1 crore respectively.

Read More: Varun Beverages consumer PAT rises 22.4% to Rs 629 crore in September quarter

"There are opportunities outside India, particularly in Africa, which is the next horizon for growth. Looking ahead over the next 20 years, Africa appears very bullish," Ravi Jaipuria, chairperson of Varun Beverages told analysts in October during a concall.