Varun Beverages Limited (VBL), a PepsiCo franchisee, announced plans to raise up to ₹7,500 crore through a Qualified Institutions Placement (QIP) today.
The shares of Varun Beverages Limited (VBL) were trading at ₹593.65 up by ₹3.65 or 0.62 per cent on the NSE today at noon.
According to the discussion note presented to VBL’s Board of Directors, the proceeds will be used for various purposes. These include investments in subsidiaries, joint ventures, or associates through equity, preference capital, or debt. The funds will also support existing business growth, product portfolio expansion, and potential strategic acquisitions.
Additionally, VBL plans to use the capital for debt repayment or prepayment for itself and its subsidiaries, as well as general corporate purposes. The exact allocation of funds will be determined by the company’s Board of Directors or a designated committee.
This move signals VBL’s intent to strengthen its balance sheet and implement growth plans. The QIP is subject to approval from equity shareholders.