Pepsico Franchisee, Varun Beverages Got A Nod For IPO

Varun Beverages, a franchisee PepsiCo, has received the markets regulator SEBI’s approval to raise over Rs 1,000 crores through an initial public offering (IPO). Other than Varun beverages, leading logistics service as well as solutions provider, Seaways Shipping & Logistics has also got SEBI’s approval to float an IPO. Varun Beverages and Seaways Shipping & Logistics had already filed their draft red herring prospectuses with the Securities and Exchange Board of India (SEBI) in the months of June and March, respectively.

Both the firms got the regulator’s approval on 31st August 2016, as per the latest update. The IPO of Varun Beverages entails sale of up to 2.5 crores shares, including fresh issue of 1.5 crores shares along with offloading of stake by the promoters. Apart from fresh issue of 1.5 crores equity shares, there would be an offer for sale of up to 50,00,000 shares each by Varun Jaipuria and Ravi Kant Jaipuria & Sons (HUF).

The sources familiar with the newest development said Varun Beverages expects to raise more than Rs 1,000 crores through the IPO. A portion of shares in this IPO would be reserved for eligible employees not exceeding 5 per cent of the post offer paid up equity share capital.

Global coordinators and book running lead managers to Varun Beverages offer are Kotak Mahindra Capital Company, CLSA India and Axis Capital. The book running lead manager is YES Securities (India) Limited.

Varun Beverages, the flagship company of R K Jaipuria Group, is one of the leading franchisee of carbonated soft drinks and non- carbonated beverages sold under trademarks owned by PepsiCo. It produces as well as distributes a wide range of products including Pepsi, D7UP, Evervess Soda, Tropicana Slice and packaged drinking water under the brand Aquafina. The company has also been awarded the franchise for Ole brand of PepsiCo products in Sri Lanka, according to its website.

Seaways Shipping & Logistics’ IPO includes fresh issue of shares worth Rs 80 crores and an offer-for sale of up to 64,45,224 equity shares by the existing shareholders which includes IDFC Private Equity.

The company has reserved around four lakhs shares for employees in this public issue. The earnings from the fresh issue would be utilised for capital expenditure, repayment of loans and for other general corporate purposes. ICICI Securities, IDFC Bank and Karvy Investor Services are about to manage the IPO.

A writer by day and a passionate reader by night. Writing just doesn't fill my pocket but it also fills my heart. Passion for writing about new events & happenings is what soothes my mind & soul.