Carlsberg files for India unit IPO; issue may raise up to $700 million

Danish brewer Carlsberg on Thursday said it has confidentially filed draft papers with India's capital markets regulator for a potential initial public offering (IPO) of its Indian business.

 

In a statement, the company said the progress and timing of the proposed share sale would depend on regulatory approvals and prevailing market conditions.

 

Following the announcement, Carlsberg's shares rose nearly 3 per cent in trading.

 

A confidential filing allows companies to submit IPO documents to the regulator without immediately making them public, enabling them to keep details of the offering private until closer to the launch.

 

Earlier in June, Bloomberg News had reported that Carlsberg was preparing to file draft papers for an IPO of its India unit and that the transaction could raise as much as $700 million. 

 

 

The report said the offering is expected to be structured as a secondary share sale by the Danish brewer and could take place later this year, citing people familiar with the matter.

 

According to Bloomberg, Carlsberg is working with Kotak Mahindra Capital and the Indian units of JPMorgan Chase & Co. and Citigroup Inc. on the proposed share sale. The report added that discussions are ongoing and that details related to the size, structure and timing of the transaction may still change.

 

Global alcohol companies have increasingly been evaluating ways to unlock value from their Indian operations as they seek to benefit from rising consumption in one of the world's fastest-growing major economies. Bloomberg reported that Pernod Ricard has also been exploring a potential listing of its India business and has appointed advisers for the process.

 

Carlsberg India is the country's second-largest brewer, with a market share of about 22 per cent, according to a company presentation cited by Bloomberg. Established in 2007, the company operates 14 breweries in India, including eight company-owned facilities and six contract manufacturing units.