Varun Beverages to raise Rs 7,500 cr for expansion; board approves QIP

New Delhi : Varun Beverages, the top bottler of PepsiCo beverages, aims to secure Rs 7,500 crore from the market via Qualified Institutions Placement (QIP) route for financing its expansion strategies. In a meeting on Wednesday, the company's board approved the proposal to raise funds up to Rs 7,500 crore by issuing equity shares through QIP, as per the company's regulatory filing. The money would be collected in "one or multiple parts" and would be "pending approval from the company's equity shareholders" through a postal vote, the statement said.

The funds raised will be used to invest in subsidiaries, joint ventures, or associates, as well as to support the expansion of current businesses through growth in product offerings, entering new markets, and strategic acquisitions. VBL stated in a regulatory filing that this will also assist in the "pre-payment or repayment" of debts and for overall corporate objectives. VBL makes up 90 per cent of the beverage sales volume for PepsiCo in India.