Varun Beverages up 5% on launching QIP, to raise up to Rs 7,500 crore

Varun Beverages shares rose 5 per cent in Thursday's trading session and registered an intraday high of Rs 595.65 per share on BSE. The buying interest in the stock can be attributed to the company launching qualified institutional placement (QIP).

 

Around 12:50 PM, Varun Beverages shares were up 1.33 per cent at Rs 575.35 per share on BSE. In comparison, the BSE Sensex was down 0.22 per cent at 77,518.05. The market capitalisation of the company stood at Rs 1,86,915.42 crore. The 52-week high of the stock was at Rs 682.84 per share on BSE and 52-week low of the stock was at Rs 399.44 per share.

 

Varun Beverages launched its QIP on Thursday, November 14, 2024. The company fixed the floor price for the issue at Rs 594.56 per share. 

 

In a filing on October 9, 2024, the company proposed to raise up to Rs  7,500 crore. The fund will be utilised to make investments in subsidiaries, joint ventures, or associates, to repay debts, and for general corporate purposes.  

 

Varun Beverages, which follows a January-December financial year, in 2023, reported net revenues at Rs 16,042.58 crore, up 21.8 per cent.

 

In the June quarter, the company reported a 28.3 per cent revenue growth to Rs 7,196.86 crore, and its profit was up 25.5 per cent to Rs 1,261.83 crore. 

 

Last December, the company announced the acquisition of 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.

 

Varun Beverages Limited is a leading bottling company in India, primarily engaged in the production and distribution of a wide range of beverages, including soft drinks, juices, and bottled water. As a key franchisee of PepsiCo, the company manufactures popular brands like Pepsi, Mountain Dew, 7UP, Mirinda, Tropicana, Slice, and Aquafina, and distributes them across India and several international markets. With a vast manufacturing and distribution network, Varun Beverages operates in multiple countries, including parts of Asia, Africa, and the Middle East. 

 

The company is publicly listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), reflecting its significant presence in the global beverage industry. Known for its growth, Varun Beverages has capitalised on the increasing demand for packaged beverages and remains focused on sustainability through water conservation and eco-friendly initiatives.

 

In the past one year, Varun Beverages shares have gained 39 per cent against Sensex's rise of 18 per cent.