Bookbuilding IPO | ₹1,113 Cr | Listed at BSE, NSE | Wed, Oct 26, 2016 - Fri, Oct 28, 2016
Varun Beverages IPO is a book build issue of ₹1,112.50 crores. The issue is a combination of fresh issue of 1.50 crore shares aggregating to ₹667.50 crores and offer for sale of 1.00 crore shares aggregating to ₹445.00 crores.
Varun Beverages IPO bidding started from Oct 26, 2016 and ended on Oct 28, 2016. The allotment for Varun Beverages IPO was finalized on Nov 3, 2016. The shares got listed on BSE, NSE on Nov 8, 2016.
Varun Beverages IPO price band is set at ₹445 per share. The lot size for an application is 33. The minimum amount of investment required by an retail is ₹14,685 (33 shares) (based on upper price). The lot size investment for sNII is 14 lots (462 shares), amounting to ₹2,05,590, and for bNII, it is 69 lots (2,277 shares), amounting to ₹10,13,265.
The issue includes a reservation of up to 5,00,000 shares for employees offered at a discount of ₹0.00 to the issue price.
Axis Capital Ltd. is the book running lead manager and Kfin Technologies Ltd. is the registrar of the issue.
Refer to Varun Beverages IPO RHP for detailed Information.
IPO Open
Wed, Oct 26, 2016
IPO Close
Fri, Oct 28, 2016
Issue Price
₹445 per share
Market Cap (Pre-IPO)
₹8,096.84 Cr
| IPO Date | 26 to 28 Oct, 2016 |
| Listed on | Tue, Nov 8, 2016 |
| Face Value | ₹10 per share |
| Price Band | ₹440 to ₹445 |
| Issue Price | ₹445 per share |
| Lot Size | 33 Shares |
| Sale Type | Fresh capital cum OFS |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Total Issue Size | 2,50,00,000 shares (agg. up to ₹1,113 Cr) |
| Fresh Issue | 1,50,00,000 shares (agg. up to ₹668 Cr) |
| Offer for Sale | 1,00,00,000 shares of ₹10 (agg. up to ₹445 Cr) |
| Share Holding Pre Issue | 16,69,51,525 shares |
| Share Holding Post Issue | 18,19,51,525 shares |
| BSE Script Code / NSE Symbol | 540180 / VBL |
| ISIN | INE200M01013 |
Varun Beverages IPO comprises a total issue size of 2,50,00,000 shares. The net offer to the public is 2,45,00,000 shares, after excluding 5,00,000 shares under a preferential allotment. Of the Net offer 1,22,50,000 (50.00%) are allocated to QIB, 36,75,000 (15.00%) allocated to NII 85,75,000 (35.00%) allocated to RII.
| Investor Category | Shares Offered | % of Net Issue | % of Total Issue | Max Allottees |
|---|---|---|---|---|
| QIB Shares Offered | 1,22,50,000 | 50.00% | 49.00% | NA |
| − Anchor Investor Shares Offered | 73,50,000 | 29.40% | NA | |
| − QIB (Ex. Anchor) Shares Offered | 49,00,000 | 19.60% | NA | |
| NII (HNI) Shares Offered | 36,75,000 | 15.00% | 14.70% | NA |
| Retail Shares Offered | 85,75,000 | 35.00% | 34.30% | 2,59,848 |
| Preferential Reservations | ||||
| Employee Shares Offered | 5,00,000 | 2.00% | NA | |
| Total Shares Offered | 2,50,00,000 | 100.00% | 100.00% | |
Investors can bid for a minimum of 33 shares and in multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 33 | ₹14,685 |
| Retail (Max) | 13 | 429 | ₹1,90,905 |
| S-HNI (Min) | 14 | 462 | ₹2,05,590 |
| S-HNI (Max) | 68 | 2,244 | ₹9,98,580 |
| B-HNI (Min) | 69 | 2,277 | ₹10,13,265 |
Varun Beverages IPO raises ₹327.08 crore from anchor investors. Varun Beverages IPO Anchor bid date is October 25, 2016.
📝 Anchor Investors Letter (PDF)
| Bid Date | Tue, Oct 25, 2016 |
| Shares Offered | 73,50,000 |
| Anchor Portion (₹ Cr.) | 327.08 |
| Anchor lock-in period end date for 50% shares (30 Days) | Sat, Dec 3, 2016 |
| Anchor lock-in period end date for remaining shares (90 Days) | Wed, Feb 1, 2017 |
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII | Up to Rs 2 Lakhs | Yes |
| Only sNII | Rs 2 Lakhs to Rs 10 Lakhs | No |
| Only bNII | Rs 10 Lakhs to NII Reservation Portion | No |
| Only employee | Yes | |
| Employee + RII/NII |
|
Yes for Employee and RII/NII |
Incorporated in 1995, Varun Beverages Ltd is franchisee of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo in India and internationally. Information in this paragraph is provided by chittorgarh.com, India's No. 1 IPO Investment Portal.The company produces and distributes a range of CSDs under the brands of Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, Seven-Up Revive, and Evervess.
Company also produces and distributes NCBs under the brands of Tropicana Slice; Tropicana Frutz (Lychee, Apple and Mango); and Nimbooz, as well as packaged drinking water under the brand Aquafina. In addition, the company has the franchise for Ole brand of PepsiCo products in Sri Lanka. Visit chittorgarh.com for more detail.They sells its products to retail outlets, including e-commerce, supermarkets, hypermarkets, convenience stores, bars, and restaurants, as well as to grocery stores through distributors. As of April 30, 2016, they operated 16 production facilities across India and five production facilities in their international licensed territories.
Competitive Strengths:
1. Demonstrated ability to grow Sales Volumes
2. Strategically located large and technologically advanced production capabilities
3. Wide spread and integrated sales and distribution network that ensures effective market penetration
4. Significant markets with high growth potential
5. Creating value through alignment with PepsiCo
| Period Ended |
|---|
| Amount in ₹ Crore |
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
| # | Issue Objects | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | Prepayment or scheduled repayment of a portion of outstanding indebtedness availed by the Company | 540.00 |
| 2 | General corporate purposes | 99.94 |
The Varun Beverages IPO is subscribed 1.86 times on October 28, 2016 5:00:00 PM (Day 3). The public issue subscribed 0.82 times in the retail category, 4.94 times in the QIB category, and 0.42 times in the NII category. Check Day by Day Subscription Details (Live Status)
| Category | Subscription (times) | Shares Offered | Shares bid for |
|---|---|---|---|
| QIB | 4.94 | 49,00,000 | |
| NII | 0.42 | 36,75,000 | |
| Retail | 0.82 | 85,75,000 | |
| Employee | 0.05 | 5,00,000 | |
| Total | 1.86 | 1,76,50,000 |
| # | Issue Expenses | Est Amt (₹ Cr.) |
|---|---|---|
| 1 | GC BRLMs and BRLMs fees and commissions (including underwriting commission, brokerage and selling commission) and brokerage and selling commission for Registered Brokers, RTAs and CDPs | 16.69 |
| 2 | Commission/processing fee for SCSBs | 2.30 |
| 3 | Registrar to the Offer, NSDL, CDSL | 0.33 |
| 4 | Other advisors to the Offer | 3.92 |
| 5 | Others - Listing fees, SEBI filing fees, book building software fees | 2.70 |
| 6 | Others - Advertising and marketing expenses, Printing and stationary | 6.66 |
| 7 | Others - Travelling | 3.03 |
| 8 | Others - Miscellaneous | 1.72 |
| Price Details | BSE | NSE |
|---|---|---|
| Final Issue Price | ₹445.00 | ₹445.00 |
| Open | ₹430.00 | ₹430.00 |
| Low | ₹417.10 | ₹416.85 |
| High | ₹471.00 | ₹471.75 |
| Last Trade | ₹461.90 | ₹459.50 |
Varun Beverages IPO is a main-board IPO of 2,50,00,000 equity shares of the face value of ₹10 aggregating up to ₹1,113 Crores. The issue is priced at ₹445 per share. The minimum order quantity is 33.
The IPO opens on Wed, Oct 26, 2016, and closes on Fri, Oct 28, 2016.
Kfin Technologies Ltd. is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.
Zerodha customers can apply online in Varun Beverages IPO using UPI as a payment gateway. Zerodha customers can apply in Varun Beverages IPO by login into Zerodha Console (back office) and submitting an IPO application form.
Steps to apply in Varun Beverages IPO through Zerodha
Visit Zerodha IPO Application Process Review for more detail.
The Varun Beverages IPO opens on Wed, Oct 26, 2016 and closes on Fri, Oct 28, 2016.
Varun Beverages IPO lot size is 33, and the minimum amount required for application is ₹14,685.
You can apply in Varun Beverages IPO online using either UPI or ASBA as a payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO Application is offered by brokers who don't offer banking services. Read more detail about applying IPO online through Zerodha, Upstox, 5Paisa, Nuvama, HDFC Bank, and SBI Bank.
The finalization of Basis of Allotment for Varun Beverages IPO will be done on Thursday, November 3, 2016, and the allotted shares will be credited to your demat account by Mon, Nov 7, 2016. Check the Varun Beverages IPO allotment status.
The Varun Beverages IPO listing date is on Tue, Nov 8, 2016.
