Coca-Cola Prepares for India IPO, Seeks $10 Billion Valuation
The Coca-Cola Company is reportedly considering a listing for its Indian bottling unit, Hindustan Coca-Cola Beverages, in December. The proposed IPO could raise around $1 billion and value the company at approximately $10 billion.
According to sources, the offering will largely consist of an offer-for-sale (OFS), where existing investors sell down their stakes. This would make it primarily a stake-monetisation transaction, rather than an IPO designed mainly to raise new funds for the bottling business.
Coca-Cola currently owns around 60% of HCCH, while Jubilant Bhartia Group owns the remaining 40%. The company has been working with Rothschild & Co as its adviser on the proposed listing. Several banks have also been linked to the transaction, including Kotak Mahindra Capital, Citigroup, JPMorgan Chase, Morgan Stanley, Axis Capital Ltd., and IIFL Capital Services.
India's IPO market has attracted significant interest from large multinational companies looking to monetise their local businesses. The proposed listing would give Coca-Cola an opportunity to unlock value from one of the country's largest bottling operations while tapping demand from India's active IPO market.