Varun Beverages is one of the largest franchisees in the world of carbonated soft drinks and non-carbonated beverages sold under trademarks owned by PepsiCo. The company produces and distributes a wide range of beverages under the Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, Seven-Up Revive, Evervess, Tropicana Slice, Tropicana Frutz (Lychee, Apple and Mango), Nimbooz, and Aquafina brands.
Thanks to Varun Beverages’ nearly 26 years of relationship with PepsiCo, it has also been granted the franchise for various PepsiCo products in Sri Lanka, Morocco, Mozambique and Zambia. In addition, it is setting up a greenfield facility in Zimbabwe in anticipation of franchise rights by PepsiCo.
India continues to remain the largest market for Varun Beverages, contributing 84.38% of its revenues from operations in FY2015.
[adinserter name="Block 3"]As of April 30, 2016, Varun Beverages operated 16 production facilities across India and five production facilities in international licensed territories. Its distribution network in India included 57 depots and 1,389 delivery vehicles while it operates 6 depots and 342 delivery vehicles in international markets. As of December 2015, Varun Beverages had 578 primary distributors (which had FY2015 sales in excess of 0.5 million litres of PepsiCo beverages) in India and 244 distributors in international operations. The 578 primary distributors in India accounted for 76.79% of its aggregate sales volumes in India in FY2015.
Promoter of Varun Beverages: RJ Corp Limited, Ravi Kant Jaipuria, Varun Jaipuria and Ravi Kant Jaipuria & Sons (HUF)
|Varun Beverages IPO details|
|Subscription Dates||26 - 28 October 2016|
|Price Band||INR440 - 445 per share|
|Fresh issue||15,000,000 shares|
|Offer For Sale||10,000,000 shares|
|Total IPO size||25,000,000 shares (INR1,112.5 crore at upper band)|
|Minimum bid (lot size)||33 shares|
|Face Value||INR10 per share|
|Listing On||BSE, NSE|
Varun Beverages' consolidated financial performance (in INR crore)
|Profit after tax||25.1||-39.5||-20.1||87.0||209.7|
Varun Beverages IPO Subscription Details
|Category||Shares offered||Subscription (no. of times, at 6 PM)|
|Day 1||Day 2||Day 3|
IPO Opening Date: 26 October 2016
IPO Closing Date: 28 October 2016
Finalisation of Basis of Allotment: 3 November 2016
Initiation of refunds: 4 November 2016
Transfer of shares to demat accounts: 7 November 2016
Listing Date: 8 November 2016
Listing Price on NSE: INR430 per share (Loss of 3.3% on IPO price)
Closing Price on NSE: INR456.8 per share (Profit of 2.6% on IPO price)