Carlsberg A/S is reportedly preparing to file draft papers for an initial public offering (IPO) of its India unit as early as this month.
The potential listing could raise up to $700 million. Carlsberg is working with Kotak Mahindra Capital, and the local units of JPMorgan Chase and Citigroup on the proposed share sale, according to a report by Bloomberg.
The IPO is expected to comprise a secondary share sale by the Danish brewer and may take place later this year. Deliberations are ongoing, and details including the size, structure, and timing of the transaction could change.
Carlsberg representatives declined to comment beyond stating that the company is exploring options to increase shareholder value, including an IPO, with no final decision made. The banks did not respond to requests for comment.
Global alcohol companies are increasingly looking to unlock value from their Indian operations, betting on rising consumption in one of the world’s fastest-growing major economies. Pernod Ricard, maker of Absolut vodka and Chivas Regal, has also explored a potential listing of its India business and hired advisers.
Carlsberg India is the country’s second-largest brewer, with a market share of about 22%. Established in 2007, it operates 14 breweries across India, including eight company-owned and six contract manufacturing units.
The company’s closest listed peer, United Breweries Ltd., has a market value of roughly $3.6 billion. Its shares have fallen about 36% over the past year, compared with an 8% drop in India’s Nifty 50 Index.