Aha! IPO is the 'right choice' for this Pepsi franchisee

Varun Beverages has Securities and Exchange Board of India's (SEBI's) approval to raise over Rs 1000 crore through an initial public offering. The company had filed their draft red herring prospectuses with the SEBI in June. It received the regulatory approval on August 31.

Varun Beverages will sell 2.5 crore shares, including fresh issue of 1.5 crore shares and offloading the stake by the promoters. Apart from fresh issue of 1.5 crore equity shares, there would be an offer for sale of up to 50 lakh shares each by Varun Jaipuria and Ravi Kant Jaipuria & Sons (HUF).

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

On the financial front, Varun Beverages revenue has increased by 35.41 per cent to Rs 3408 crore in CY15 as compared to same period in previous financial year. It posted net profit of Rs 87.04 crore in CY15 against net loss of Rs 20.16 crore in CY14.

Varun Beverages is a leading franchisee of carbonated soft drinks and non- carbonated beverages sold under trademarks owned by PepsiCo. It produces and distributes a wide range of products including Pepsi, D7UP, Evervess Soda, Tropicana Slice and packaged drinking water under the brand Aquafina.