Coca-Cola Weighs December Filing for $1 Billion IPO of India Bottling Business

Coca-Cola is considering filing draft papers as early as December for the proposed stock market listing of its Indian bottling business, Hindustan Coca-Cola Beverages, in a deal that could raise around $1 billion. 

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The drinks company is looking at a valuation of about $10 billion for the Indian business, according to people familiar with the discussions cited in the report. 

The proposed IPO is expected to largely involve the sale of shares by existing investors rather than the issue of fresh shares. 

Coca-Cola has also brought Axis Capital and IIFL Capital Services on board to work on the proposed offering. 

They both belong to the same list of financial institutions that are currently involved in IPO preparations. Kotak Mahindra Capital, Citigroup, JPMorgan Chase, and Morgan Stanley have also been reported as participating in the deal, as per the sources cited in the article. 

As the discussion continues, this may mean that there is a possibility that the terms of the issue may be altered. Coca-Cola and the banks involved did not immediately respond to requests for comment. 

India IPO market sees strong fundraising 

The possible listing comes during a busy period for India’s primary market. 

Over $10 billion was raised by companies via IPOs in the July-to-September quarter, marking an all-time high for the quarter, according to figures provided by Bloomberg and reported in the article. 

The raising of funds through large IPOs in the quarter was helped by the National Stock Exchange of India and SBI Funds Management. 

Close to 250 IPOs have raised over $13 billion in India this year. 

An IPO of Hindustan Coca-Cola Beverages will enable Coca-Cola to gain access to the public markets in India as well as provide a means of unlocking value from its bottling activities in the country. 

For now, however, the proposed December filing remains under consideration, with the final details of the offering yet to be settled.