Varun Beverages whose initial public offering opened on Wednesday was subscribed 0.34 times as investors bid for 59.41 lakh shares of the total 1.76 crore shares on offer.
The IPO aims to raise R1,113 crore in a price band of R440-445 per share . The issue on the first day received bids for 42.95 lakh shares from Qualified institutional investors or 0.88 times of the 49 lakh shares reserved. Retail investors bid for nearly 0.11 times or 9.83 lakh shares of the 85.75 lakh shares reserved. High-net-worth individuals bid for 6.62lakh shares of the 36.75 lakh shares reserved for them, bidding 0.18 times.
On Monday, the company raised R327.08 crore from anchor investors by allotting 73,50,000 shares at R445 per share. The anchor investors include Merrill Lynch, Morgan Stanley, American Funds Insurance, Abu Dhabi Investment, Nordea, Wasatch, Small Cap World Fund, Sundaram MF, among others.
The company reported revenues of R3,408 crore for the year ended December 31, 2015, up by 35.4% from the previous year’s R2,517 crore. For the year ending December 2015, the company made a net profit of R87 crore against the previous year’s loss of R20 crore.The company is the franchisee of Pepsico in 17 Indian states. The company produces and sells Pepsico’s brands including Pepsi,Seven-up, Tropicana, Nimbooz among others. The company is also the franchise for Pepsico’s products in Nepal, Srilanka, Morocco, Mozambique, and Zambia.
Kotak Mahindra, Axis Capital, and CLSA India are the global coordinators and book running lead managers (BRLMs) to the issue. Yes Securities is the book running lead manager.