Coca-Cola is considering a December filing for an initial public offering of its Indian bottling arm, aiming for a valuation of about $10 billion amid strong investor appetite for share sales in India’s dynamic market.
Coca-Cola is weighing a December filing for an initial public offering of its Indian bottling arm, Hindustan Coca-Cola Beverages, according to people familiar with the matter. The deal would mark one of the most closely watched listings in India’s consumer sector, with the beverage giant aiming to test a market that has remained lively for new share sales.
The company has broadened the banking group working on the transaction by bringing in Axis Capital and IIFL Capital Services, the people said. They join a roster that already includes Kotak Mahindra Capital, Citigroup, JPMorgan Chase and Morgan Stanley, underscoring the scale of the proposed offering and the effort being put into preparing the sale.
The planned flotation is expected to be driven mainly by shares sold by existing investors rather than fresh stock issued by the company. According to the people cited in the reports, Coca-Cola is targeting a valuation of about $10 billion for the bottling unit, while the listing could raise roughly $1 billion. The company has yet to comment publicly, and the discussions remain private, which means the timetable, size and structure could still change.
If it goes ahead, the IPO would give Coca-Cola a way to crystallise value from one of India’s largest bottling operations at a time when investor appetite for new offerings remains strong. India’s IPO market has been unusually active this year, with proceeds in the July-to-September quarter reaching almost $10 billion, the highest on record for that period, according to Bloomberg-compiled data. The country is also on track for one of its strongest years ever for share sales, with more than $13 billion already raised across nearly 250 offerings.
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