Carlsberg to file draft papers for $700 million India IPO soon: Report
Danish brewer Carlsberg A/S is reportedly moving ahead with plans to take its India business public and could file draft IPO papers as early as
Danish brewer Carlsberg A/S is reportedly moving ahead with plans to take its India business public and could file draft IPO papers as early as this month, Bloomberg News reported, citing people familiar with the matter. The proposed offering could raise as much as $700 million through the listing of its Indian unit, the news report said. It also noted that the company is working with Kotak Mahindra Capital Co. and the local units of JPMorgan Chase & Co. and Citigroup Inc. on the proposed share sale. IPO plans still under discussion The initial public offering (IPO) is expected to consist of a secondary share sale by the Danish brewer, the sources told Bloomberg News. While no official timeline has been announced yet, the public issue could be launched later this year if the said plans move forward.
Meanwhile, deliberations are ongoing and details including the size, structure and timing of the transaction could still change. Also Read | How can retail investors buy shares in SpaceXs IPO? Representatives for Carlsberg told the news agency that it is evaluating options to increase shareholder value, including an IPO, but stressed that no final decision has been taken at this stage. The banks who are reportedly involved in the process also did not comment on the matter. Carlsberg isn't the only alcohol major eyeing an India IPO India has emerged as a key growth market for global alcohol companies, which is why several multinational players are increasingly exploring ways to unlock value from their Indian operations. They are majorly betting on rising consumption in one of the world’s fastest-growing major economies.
Carlsberg is not alone in considering a public listing. French spirits maker Pernod Ricard SA, known for brands such as Absolut vodka and Chivas Regal Scotch whisky, has also been exploring a potential listing of its India business and has reportedly hired advisers to assist with the process, the news agency said. Carlsberg India's market share in the industry Carlsberg India is the country’s second-largest brewer, with a market share of about 22%, according to a company presentation. The company was established in India in 2007 and now it operates14 breweries across the country, which includes eight company-owned facilities and six contract manufacturing units, according to information on its website. The company’s closest listed peer, United Breweries Ltd., has a market value of about $3.6 billion.
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