Varun Beverages IPO subscribed 34% on first day of bidding

NEW DELHI: The IPO of Varun Beverages, PepsiCo's largest franchise bottler, was subscribed 34 per cent on the first day of the offer on Wednesday.

The offer received bids for 59,41,947 shares against the total issue size of 1,76,50,000 shares, as per NSE's data till 1700 hrs.

Qualified institutional buyers (QIBs) category saw 88 per cent subscription and that of non institutional investors 18 per cent.

Retail investors quota received 11 per cent subscription. Varun Beverages yesterday raised over Rs 327 crore by allotting shares to anchor investors.

The initial public offer of Varun Beverages, that entails sale of up to 2.5 crore shares, will close on October 28.

The company has fixed the price band at Rs 440-445 per share. At the upper end, the company would raise Rs 1,112.50 crore through the offer.

Proceeds of the issue would be utilised for capital expenditure, repayment of loans and other general corporate purposes.

The issue is being managed by Kotak Mahindra Capital Company, Axis Capital, CLSA India and YES Securities (India) Ltd.