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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 ₹445.00 per share . The lot size for an application is 33. The minimum amount of investment required by an retail is ₹14,520 (33 shares). 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 Date | October 26, 2016 to October 28, 2016 |
| Listing Date | November 8, 2016 |
| Face Value | ₹10 per share |
| Issue Price Band | ₹440 to ₹445 per share |
| Issue Price Final | ₹445 per share |
| Lot Size | 33 Shares |
| Sale Type | Fresh Capital-cum-Offer for Sale |
| Total Issue Size | 2,50,00,000 shares (aggregating up to ₹1,112.50 Cr) |
| Fresh Issue | 1,50,00,000 shares (aggregating up to ₹667.50 Cr) |
| Offer for Sale | 1,00,00,000 shares of ₹10 (aggregating up to ₹445.00 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 16,69,51,525 shares |
| Share Holding Post Issue | 18,19,51,525 shares |
Varun Beverages IPO offers total 2,50,00,000 shares. Out of which 1,22,50,000 (49.00%) allocated to QIB, 49,00,000 (19.60%) allocated to QIB, 36,75,000 (14.70%) allocated to NII, 85,75,000 (34.30%) allocated to RII and 73,50,000 (29.40%) allocated to Anchor investors.
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| QIB Shares Offered | 1,22,50,000 (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 (14.70%) | NA |
| Retail Shares Offered | 85,75,000 (34.30%) | 2,59,848 |
| Employee Shares Offered | 5,00,000 (2.00%) | NA |
| Total Shares Offered | 2,50,00,000 (100.00%) |
| 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 |
Varun Beverages IPO opens on October 26, 2016, and closes on October 28, 2016.
| IPO Open Date | Wed, Oct 26, 2016 |
| IPO Close Date | Fri, Oct 28, 2016 |
| Tentative Allotment | Thu, Nov 3, 2016 |
| Initiation of Refunds | Fri, Nov 4, 2016 |
| Credit of Shares to Demat | Mon, Nov 7, 2016 |
| Tentative Listing Date | Tue, Nov 8, 2016 |
| Cut-off time for UPI mandate confirmation | 5 PM on Fri, Oct 28, 2016 |
Investors can bid for a minimum of 33 shares and in multiples thereof. The following table depicts the minimum and maximum investment by Individual Investors (Retail) and HNI in terms of shares and amount.
| 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 |
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
| Particulars | For the year/period ended (in Rs. Million) | |||
|---|---|---|---|---|
| 31-Dec-15 | 31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |
| Total Assets | 44,374.50 | 32,950.08 | 29,893.68 | 25,548.04 |
| Total Revenue | 34,084.30 | 25,170.96 | 21,325.03 | 18,441.90 |
| Profit After Tax (PAT) | 870.38 | (201.56) | (395.30) | 251.08 |
The Company Varun Beverages IPO proposes to utilise the Net Proceeds from the Issue towards the following objects:
| S.No. | Objects of the Issue | Expected Amount (₹ in crores) |
|---|---|---|
| 1 | Prepayment or scheduled repayment of a portion of outstanding indebtedness availed by the Company | 540.00 |
| 2 | General corporate purposes | 99.94 |
[Dilip Davda] As issue is aggressively priced, only risk savvy cash surplus investors may consider investment for long term. Read detail review...
| Listing Date | November 8, 2016 |
| BSE Script Code | 540180 |
| NSE Symbol | VBL |
| ISIN | INE200M01013 |
| Final Issue Price | ₹445 per share |
Varun Beverages Ltd.
F - 2/7, Okhla Industrial Area,
Phase I
New Delhi - 110020
New Delhi, New Delhi
Phone: +91 11 41706720
Email: complianceofficer@rjcorp.in
Website: http://www.varunpepsi.com
Kfin Technologies Ltd.
Phone: 04067162222, 04079611000
Email: einward.ris@karvy.com
Website: https://ipostatus.kfintech.com/
Varun Beverages IPO is a main-board IPO of 2,50,00,000 equity shares of the face value of ₹10 aggregating up to ₹1,112.50 Crores. The issue is priced at ₹445 per share. The minimum order quantity is 33.
The IPO opens on October 26, 2016, and closes on October 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 October 26, 2016 and closes on October 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 Monday, November 7, 2016. Check the Varun Beverages IPO allotment status.
The Varun Beverages IPO listing date is on Tuesday, November 8, 2016.
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