New Delhi. PepsiCo's leading bottler Varun Beverages (VBL) has announced to raise Rs 7,500 crore for its expansion and development plans. The company will raise this amount through Qualified Institutional Placement (QIP). The proposal was approved in the company's board meeting held on Wednesday. The company said in its regulatory filing that this fund will be raised in "one or more stages" and it will be presented for the approval of the shareholders. This amount will be invested for various business needs as well as expansion in subsidiaries, joint ventures, or new areas.

Along with this, the amount will also be used for “pre-payment” or “repayment” of loans and general corporate purposes. VBL contributes 90% of PepsiCo's total sales in India and this fundraising will further accelerate the company's expansion.

Strong financial performance and expansion plans
VBL's revenue in FY23 was Rs 16,042.58 crore, registering a growth of 21.8%. The company also showed strong growth of 28.3% in the June quarter, generating revenue of Rs 7,196.86 crore. Net profit grew 25.5% to Rs 1,261.83 crore in the same quarter. The company acquired South Africa's Beverage Company (Bevco) in December last year, which will help it expand in the African market. VBL currently has operations in 6 countries and serves over 1.4 billion customers.

Information about QIP
Qualified Institutional Placement (QIP) is a process through which listed companies can raise capital. Under this, the company can issue shares, convertible debentures or other types of securities. Only institutional investors like mutual funds, foreign institutional investors and venture capital funds can participate in it. The process of raising capital through QIP is less complex and faster than other methods.