Carlsberg has reportedly taken the first step toward listing its Indian business by confidentially submitting draft papers for an initial public offering (IPO) that could raise up to $700 million, or nearly Rs 6,650 crore, according to a Bloomberg report citing people familiar with the development. If the plans move forward as expected, the proposed public issue could be launched later this year. The offering is likely to consist entirely of a secondary share sale by the Danish brewing company, allowing it to sell part of its existing stake rather than issue fresh shares.
As per the people citing in the report, the brewer has opted for the confidential filing route, a mechanism that allows companies to begin the IPO process without immediately disclosing detailed financial and operational information to the public.
The sources said the proposed listing is expected to be structured as a secondary . However, they also noted that discussions are ongoing and that the final size, structure and timing of the issue could still change before the company moves ahead with a public launch.
Top Investment Banks Advising The Transaction
Carlsberg has reportedly appointed a group of leading investment banks to manage the proposed offering.
According to the people familiar with the matter, the company is working with Kotak Mahindra Capital Co. along with the Indian investment banking arms of JPMorgan Chase & Co. and Citigroup Inc. to advise on the IPO process.
The confidential filing route has become increasingly popular among companies seeking greater flexibility while preparing for public listings.
The reported filing comes at a time when India’s primary market is witnessing record activity.
Companies submitted draft prospectuses for a record amount of fundraising during June, reflecting strong momentum in the country’s IPO market. Among the biggest names preparing to tap investors are Jio Platforms Ltd. and National Stock Exchange of India Ltd., both of which are expected to rank among the largest public offerings ever seen in India.
According to data compiled by Primedatabase.com, nearly 12 companies filed draft papers last month with plans to collectively raise more than Rs 885 billion (around $9.3 billion). That surpassed the previous monthly record of over Rs 700 billion set in July last year, when 32 companies had filed draft prospectuses.
Carlsberg India Remains A major player In The Beer Market
Carlsberg entered the Indian market in 2007 and has steadily expanded its presence over the years. Today, the company is India’s second-largest brewer, commanding an estimated market share of about 22 per cent.
Its manufacturing network includes 14 breweries across the country, comprising eight company-owned facilities and six contract manufacturing units, according to information available on the company’s website.