Coca-Cola Invites Banks to Pitch for $1 Billion HCCB IPO
Coca-Cola has invited investment banks to pitch for underwriting roles in the proposed $1 billion IPO of Hindustan Coca-Cola Beverages.
SociapaHQ
The Coca-Cola Company has asked top global and domestic investment banks to pitch for underwriting roles in the proposed initial public offering (IPO) of its Indian bottling arm, Hindustan Coca-Cola Beverages (HCCB).
The proposed public offer is expected to raise about $1 billion and would be one of the biggest IPOs anticipated in India's capital markets from a multinational-backed company.
Shortlisted investment banks will be invited to present in London where advisory firm Rothschild & Co will run the process to select the IPO syndicate for Coca-Cola as the company’s lead financial adviser.
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IPO Plans:
Coca-Cola is seeking a valuation of about $10 billion for HCCB. But talks are ongoing and the final valuation, size, structure and timing of the offering are yet to be decided.
If the listing goes ahead, HCCB will join a host of multinationals looking to tap the domestic capital market to unlock value from their India operations.
Recent examples include Hyundai Motor India, which raised $3.3 billion in India’s biggest IPO ever, and LG Electronics India, which has listed its Indian unit as well.
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Business Scale:
Bengaluru-based HCCB is one of India’s largest non-alcoholic beverage manufacturers and Coca-Cola bottlers. The company operates from 14 manufacturing units across 12 states and serves 236 districts in South and West India.
It boasts a distribution network of over 1.7 million retail outlets and more than 5,000 employees.
The listing plans began after the sale of a 40% stake in HCCB’s parent holding company to Jubilant Bhartia Group for around ₹12,500 crore.
The deal was part of Coca-Cola’s strategy of franchising out bottling operations but maintaining strategic ownership in core growth markets.
