The potential offering could generate up to $700 million, the sources indicated, preferring to remain anonymous due to the confidential nature of the information. Carlsberg is collaborating with Kotak Mahindra Capital Co. along with the local branches of JPMorgan Chase & Co. and Citigroup Inc. for the planned share sale, the sources added.
The IPO is anticipated to involve a secondary share sale by the Danish brewer and might occur later this year, as per the sources. Ongoing discussions may alter specifics such as size, structure, and timing of the deal.
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Carlsberg representatives chose not to comment, reiterating that the company is evaluating options to enhance shareholder value, including an IPO, but a final decision has yet to be reached. The banks have not responded to inquiries for comments.
Global alcohol producers are increasingly seeking to capitalize on their Indian operations, banking on rising consumption in one of the world’s rapidly growing major economies. Pernod Ricard SA, known for Absolut vodka and Chivas Regal Scotch whisky, is also considering a potential listing of its India business and has engaged advisers for this undertaking.
Carlsberg India ranks as the second-largest brewer in the country, boasting a market share of around 22%, as stated in a company presentation. Founded in India in 2007, the company operates 14 breweries nationwide, including eight owned facilities and six contract manufacturing units, according to details on its website.
The nearest publicly traded competitor, United Breweries Ltd., has a market capitalization of approximately $3.6 billion. Its shares have dropped roughly 36% over the past year, compared to an 8% decline in India’s benchmark Nifty 50 Index.
