Varun Beverages has filed draft prospectus with capital market regulator SEBI to launch its IPO. Varun Beverages IPO will entail sale of up to 25 million shares, including a fresh issue of 15 million shares. In addition, promoter Ravi Jaipuria will be selling 5 million shares while another 5 million shares will be sold by Ravi Kant Jaipuria & Sons (HUF), and Varun Jaipuria and Ravi Kant Jaipuria & Sons (HUF). While the Pepsi-bottler has not revealed the IPO size, sources close to the matter claim the company plans to raise INR10 billion (INR1,000 crore). Nearly 5% of the shares will be reserved for eligible employees.
Varun Beverages IPO will be managed by Kotak Mahindra Capital Company, Axis Capital, CLSA India and YES Securities India while Karvy Computershare will be the registrar.
Varun Beverages is the largest bottler of PepsiCo in India while its world ranking is second. Varun Beverages is the flagship company of RJ Corp which also counts fast-food restaurants, education and hospitality in its businesses. The fast-food business is housed under Devyani International in which Temasek has about 15% stake.
Private equity investors but not in Varun Beverages IPO
Private equity (PE) investors Standard Chartered Private Equity and Aion Capital Partners have equity stake in Varun Beverages. Aion Capital Partners – a joint venture of Apollo Global Management and ICICI Venture – invested in 2015 while Standard Chartered Private Equity made its first investment in Varun Beverages nearly five years ago. Nevertheless, none of the PE investors plan to participate in Varun Beverages IPO. Varun Beverages produces and distributes a wide range of products including Pepsi, D7UP, Evervess Soda, Tropicana Slice and packaged drinking water under the brand Aquafina. Varun Beverages is a global play as the company’s website states it also houses operations in Nepal, Morocco, Sri Lanka, Mozambique, and Zambia.