Varun Beverages files draft papers for IPO
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Mumbai: Varun Beverages Ltd, the second largest PepsiCo. Inc. bottler in the world, has filed its draft initial share sale documents with the capital markets regulator on Wednesday.
The company, the flagship firm of Delhi-based billionaire Ravi Jaipuria, may raise at least Rs.1,000 crore through the IPO, said a person familiar with the development, requesting anonymity as he is not authorized to speak to reporters.
The initial public offering will consist of a sale of 15 million new shares and an offer for sale of as many as 10 million shares by the Jaipuria family, the company said in a statement late on Wednesday.
Mint had earlier on Wednesday first reported that Varun Beverages will file IPO documents.
Varun Beverages is a distributor of PepsiCo. products in north and east India and the largest bottler for the US-based beverage maker in South Asia, with operations in India, Nepal and Sri Lanka. Globally, it’s the second largest bottler of PepsiCo. beverages, behind Tingyi Holdings Corp. of China.
“They are looking to raise around Rs.700-750 crore of primary capital to invest in business expansion and to pare some debt,” he said.
Promoter Jaipuria will dilute some part of his holding through secondary share sale, which will take the IPO size to over Rs.1,000 crore, he added.
Kotak Mahindra Capital Co. Ltd, Axis Capital Ltd and CLSA are the bankers to the IPO, said the second person cited above, also requesting anonymity.
The share sale is expected to hit the market end of this year or early next year, he added.
Emails sent to Kotak Mahindra Capital, Axis Capital and CLSA did not elicit any response till the time of filing the report.
Calls and text messages sent to Ravi Jaipuria went unanswered.
Varun Beverages is a unit of Jaipuria’s holding company RJ Corp., which has diverse business interests ranging from beverages, dairy products and fast-food restaurants to education and hospitality.
Private equity investors in Varun Beverages will not be selling shares in the IPO, the second person cited above said.
Standard Chartered Private Equity and Aion Capital Partners are investors in Varun Beverages. Standard Charted invested $48 million and $32 million in the firm in 2011 and 2012, respectively.