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

New Delhi: Varun Beverages, the leading bottler of beverage major PepsiCo, has plans to raise Rs 7,500 crore from the market through Qualified Institutions Placement (QIP) route to fund its growth plans.

The board of the company in a meeting held on Wednesday approved the proposal for "raising of funds by way of issuance of equity shares for an aggregate amount not exceeding Rs 7,500 crore" through QIP, according to a regulatory filing by the company.

The fund would be raised in "one or more tranches" and would be "subject to receipt of approval of equity shareholders of the company" through postal ballot, it added.

The proceeds from this fundraise would be utilised in "making investments in subsidiaries, joint ventures or associates" or to "fund the growth of existing businesses including expanding product portfolio, entering into new territories and making strategic acquisitions".

This will also help in "Pre-payment or repayment" of debts and in general corporate purposes, Varun Beverages Ltd (VBL) said in a regulatory filing.

VBL accounts for 90 per cent of PepsiCo's beverage sales volume in India.