World’s famous beer company Carlsberg A/S may soon enter the Indian stock market. In fact, the company may soon bring an IPO worth 700 million dollars i.e. about Rs 6400 crore. For this the company has appointed three banks. The company has acquired Kotak Mahindra Capital Company, JPMorgan Chase & Co. and Citigroup Inc. Local units have been selected as advisors for the proposed share sale. A draft red herring prospectus could be filed as early as May, the people told ET, speaking on condition of anonymity. The media report quoted sources as saying that this offering is expected to include a secondary share sale by the parent company and it may happen later this year. Details like size, structure and timing of the transaction are still being finalized and are subject to change.
These companies are also preparing
This listing will place the company among the growing multinational companies that are using the Indian market to take advantage of higher local valuations. Hyundai Motor Co., LG Electronics Inc. and Carraro India Limited, all have listed their Indian operations in the last two years to tap into the country’s deep domestic investor base. According to data compiled by Bloomberg, Hyundai Motor is trading at 11 times this year’s estimated earnings, while it is about 32 times for its Indian unit. Pernod Ricard SA, the maker of Absolut Vodka and Chivas Regal Scotch whisky, is also considering listing its Indian business. Bonfglioli Transmission Private Limited, Hindustan Coca-Cola Beverages and Fossil Group Inc. Companies like are also considering taking similar steps.
22 percent share in beer market
In an ET report, Kenny Leith, Head of External Communications, said that Carlsberg Group is looking at different options to increase shareholder value, which could also include an IPO of our business in India, but no final decision has been taken yet. The report says that JP Morgan, Kotak and Citigroup have not given any statement. According to a company presentation, Carlsberg India is the second largest brewer in the country, with about 22 percent share in the beer market. According to data provider Traxon, the unit generated revenue of about 90 billion rupees ($1.1 billion) for the financial year ending March 2025.