Varun Beverages Ltd. (VBL), the primary bottler for PepsiCo in India, has announced plans to raise Rs 7,500 crore through a Qualified Institutions Placement (QIP) to support its ambitious growth plans. The company’s board approved the fundraising proposal in a meeting held on Wednesday, according to a regulatory filing.
The funds will be raised in multiple tranches, pending shareholder approval via a postal ballot. VBL plans to use the capital to invest in subsidiaries, joint ventures, and strategic acquisitions. The funds will also support expanding its product portfolio, entering new territories, and repaying existing debt.
As PepsiCo’s largest bottler in India, VBL accounts for 90% of the beverage giant’s sales volume in the country.