Varun Beverages IPO
Varun Beverages IPO — date, price band, lot size & details 2016
Varun Beverages listed on 8 Nov 2016 at ₹430, 3.4% below the ₹445 issue price.
Varun Beverages is a PepsiCo franchisee that makes and distributes soft drinks and non carbonated beverages under PepsiCo brands in India and abroad. Its total income was Rs 2,907.41 crore in the year to December 2015.
Stock price
Varun Beverages is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 26 Oct 2016
- Close 28 Oct 2016
- Allotment 03 Nov 2016
- Refund/credit 04 Nov 2016
- Listing 08 Nov 2016
Issue summary
The terms of the offer, as filed.
| IPO Dates | 26 to 28 Oct, 2016 |
|---|---|
| Price Band | ₹440 – ₹445 |
| Face Value | ₹10 |
| Lot Size | 33 Shares |
| Issue Size | ₹1112.5 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 14,685 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 33 shares at the ₹445 cut-off. Drag to size your application.
| 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 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01Total income rose from Rs 1,777.13 crore in 2013 to Rs 2,907.41 crore in 2015.
- 02It turned a loss of Rs 16.50 crore in 2013 into a profit of Rs 147.53 crore in 2015, and earned Rs 227.64 crore in the first half of 2016.
- 03EBITDA rose from Rs 309.32 crore in 2013 to Rs 649.86 crore in 2015.
- 04Rs 540.00 crore of the issue was for repaying debt.
Risks · 5
- 01Total borrowing was Rs 1,755.37 crore on 30 June 2016, above its net worth of Rs 1,533.06 crore.
- 02Its business depends entirely on its franchise agreements with PepsiCo, which cover all of its Rs 2,907.41 crore of 2015 income.
- 03Soft drink sales are seasonal and peak in summer; total income was Rs 2,124.41 crore in the first half of 2016.
- 04Sugar and packaging costs drive margins, and sugary drinks face health related taxes; total assets were Rs 4,753.96 crore.
- 05Promoter holding fell from 86.34% before the issue to 73.72% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Varun Beverages offer document.
| Metric | 30 Jun 2016 | 31 Dec 2015 | 31 Dec 2014 | 31 Dec 2013 |
|---|---|---|---|---|
| Assets | 4,753.96 | 4,141.45 | 2,871.83 | 2,496.72 |
| Total Income | 2,124.41 | 2,907.41 | 2,061.10 | 1,777.13 |
| Profit After Tax | 227.64 | 147.53 | 35.40 | -16.50 |
| EBITDA | 610.20 | 649.86 | 400.11 | 309.32 |
| NET Worth | 1,533.06 | 1,274.68 | 869.04 | 637.36 |
| Reserves and Surplus | 532.39 | 275.91 | 120.28 | 88.60 |
| Total Borrowing | 1,755.37 | 1,571.16 | 1,817.60 | 1,692.06 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Where the money goes
₹639.94 Cr of the issue is earmarked to named objects.
About the company
It produces and distributes soft drinks under brands such as Pepsi, Diet Pepsi, Seven-Up and Mirinda.
Its financial year ended in December at the time of the IPO.
The IPO was Rs 1,112.5 crore, with Rs 667.50 crore of fresh issue and Rs 445.00 crore of offer for sale, at Rs 445, the top of the Rs 440 to Rs 445 band. Most of the fresh money was for repaying debt.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Varun Beverages IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Axis Capital
260 issues handledBest listing: Latent View Analytics (+160.0%). Weakest: Shriram Properties (-23.7%).
Kotak Mahindra Capital Company Limited
204 issues handledBest listing: Premier Energies (+120.0%). Weakest: Puravankara Projects (-22.5%).
CLSA India Pvt. Ltd
18 issues handledBest listing: Unicommerce eSolutions (+117.6%). Weakest: ICICI Securities (-16.3%).
YES Bank Ltd
14 issues handledBest listing: CDSL (+67.8%). Weakest: New India Assurance (-6.3%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Varun Beverages?
The current Grey Market Premium is ₹0.
What is the Varun Beverages IPO price band?
₹440 to ₹445, on a face value of ₹10.
When is the allotment?
The basis of allotment is 3 November 2016, with listing on 8 November 2016.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
