Varun Beverages Limited (VBL) announced the successful closure of its Qualified Institutions Placement (QIP) of equity shares on November 19, 2024. The company raised approximately ₹7,500 crore by allocating 13.27 crore equity shares at an issue price of ₹565 per share, representing a 4.97% discount to the floor price of ₹594.56 per share, as prescribed under SEBI regulations.

Key Highlights:

  1. Issue Price: ₹565 per equity share (including a premium of ₹563 per share).
  2. Discount Offered: ₹29.56 (4.97%) to the floor price of ₹594.56, as per SEBI ICDR Regulations.
  3. Total Equity Allocation: 132,743,362 equity shares.
  4. Funds Raised: Approximately ₹7,500 crore.

Approval Details:

  • The allocation and closure were approved by VBL’s Management Committee during a meeting held on November 19, 2024.
  • The committee also approved and adopted the placement document and finalised the confirmation of allocation notes for eligible qualified institutional buyers (QIBs).

Use of Proceeds:

While specific use cases were not disclosed, funds raised through QIPs are typically directed toward business expansion, debt repayment, or general corporate purposes.

This QIP is a significant milestone for Varun Beverages, bolstering its financial position and supporting its growth strategy in the beverage sector.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.

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