Billionaire Ravi Jaipuria's Varun Beverages Limited is planning to raise up to Rs 7,500 crore through a qualified institutional placement (QIP) to raise funds from institutional investors to strengthen its balance sheet. Moneycontrol has given this information quoting sources. The report quoted sources as saying that the QIP is expected to start sometime next month after the company's shareholders approve the fund raising plan and it is decided that the funds will be used for large-scale capacity expansion.

Sources said that investment banks Kotak Mahindra Capital and Jefferies will act as advisors to Varun Beverages to raise funds.

Time till November 8 for approval The company is currently in the process of seeking shareholders' approval for the QIP. Shareholders have time till November 8 to submit their approval or disapproval for the company's fund raising plan. In a notice sent to its shareholders, the company said that it will use this fund for the growth of existing business, including investing through equity, preference capital or debt in subsidiaries, joint ventures or associates, expanding the product portfolio, entering new areas and making strategic acquisitions. This fund will also be used for prepayment or repayment of some loans taken by the company or its subsidiaries. Varun Beverages , PepsiCo's second largest franchise, is PepsiCo's second largest franchise (outside the US) whose operations are spread across 10 countries and it has franchise rights. Apart from this, it also has distribution rights in 4 countries. The company sells PepsiCo licensed products such as soft drinks, fruit juices, energy drinks and packaged water.