varun beverages pepsi pepsico bottler jaipuria ravi kant public issue ipo subscription retail portion listing price band nse bse listing stock exchanges price band india rupees Rs
A bottle of Pepsi is seen in this file photo illustration February 10, 2015. Shares of the company's bottler Varun Beverages listed at a discount of 3.37 percent to issue price of Rs 445 per share on Tuesday on Indian stock exchanges, but rose later to trade at Rs 461.95 at around 11.57 a.m. on BSE.Reuters file

Varun Beverages, bottler of PepsiCo, disappointed investors on Tuesday when the shares of the company listed at 3.40 percent discount to the issue price of Rs 445 per share. The stock recovered later to trade at Rs 456, a marginal gain of 2.6 percent, at around 12 noon. PNB Housing Finance consolidated its gains and was up 7.6 percent on Tuesday at Rs 958.40.

In terms of volume, the counter witnessed heavy interest, with 30.26 lakh shares changing hands within about 3 hours of listing.

The weak listing was on the cards since the Rs 1,000-crore initial public offering (IPO) of the company did not evince interest among retail investors resulting in under-subscription of retail portion, though at an overall level, the issue was oversubscribed 1.84 times.

"On CY2015's net profit of Rs 87cr, the issue, at its upper band is priced at a P/E ratio of 85.4x which looks expensive," analyst Shrikant Akolkar of Angel Broking had said in his IPO note.

Varun Beverages had approached the primary market with a public issue of 2.5 crore equity shares, of which one crore shares comprised offer for sale (OFS) by promoters Ravi Jaipuria and his son Varun Jaipuria. The price band was fixed at Rs 440-445 per share.

Varun Beverages has total 21 manufacturing facilities in India and a few other countries. Indian operations account for 82 percent of its total revenues while rest comes from other countries.

The company's net profit in the calendar year 2015 was Rs 84 crore on turnover of Rs 3,394 crore.

The BSE Sensex opened on a positive note on Tuesday, extending Monday's gains tracking global cues but later gave up gains and was trading almost flat at 27,452. Top Sensex gainers were Tata Motors, Bajaj Auto and Asian Paints.

Stock markets worldwide are factoring a victory for Hillary Clinton in the US presidential elections.

"U.S. stocks ended higher breaking a nine-day losing streak, after the FBI absolves presidential candidate Hillary Clinton," Geojit BNP Paribas said in its Tuesday note.

All the three indices — Dow Jones Industrial Average, Nasdaq and S&P500 — closed with gains of around 2.25 percent.

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