Coca-Cola Co. is considering filing a draft prospectus in December for an initial public offering of its Indian bottling business, Hindustan Coca-Cola Beverages Pvt Ltd, according to people familiar with the matter. The proposed IPO could raise around $1 billion and may value the business at approximately $10 billion, although the plans remain under discussion and could change.
The Atlanta-based beverage company has also added Axis Capital Ltd and IIFL Capital Services Ltd to the group of investment banks working on the proposed offering, the people said, requesting anonymity because the discussions are private. Coca-Cola is also working with Kotak Mahindra Capital Co., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley, according to local media reports.
The offering is expected to consist largely of shares sold by existing investors rather than a major fresh issue, according to the people familiar with the matter. A listing would potentially allow Coca-Cola to unlock value from one of India's largest bottling operations while giving investors an opportunity to participate in the business. However, the final structure and size of the offering have not been decided.
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The proposed listing comes as India's IPO market continues to attract substantial investor interest. Companies raised almost $10 billion through initial offerings during July-September, marking the strongest quarter on record, according to Bloomberg data. Major offerings by the National Stock Exchange of India and SBI Funds Management have contributed to the strong fundraising activity.
India has already seen more than $13 billion raised through nearly 250 IPOs this year, according to data compiled by Bloomberg, putting the market on course for one of its stronger years for new listings. The activity has encouraged companies and existing investors to explore public-market opportunities as demand for Indian equities remains significant.
Discussions around the Hindustan Coca-Cola Beverages IPO are continuing, and details including the filing date, valuation and offering structure could still change. Representatives for Coca-Cola and the investment banks involved did not immediately respond to requests for comment.
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