Beer manufacturing company will debut in India, bringing Rs 6700 crore IPO

The world’s 180 year old beer manufacturing company is going to debut in the Indian stock market. Yes, Carlsberg is a popular beer brand in India. This Danish company came into existence in 1847. According to people with knowledge of the matter, Carlsberg A/S is preparing to file draft papers for the initial public offering of its Indian unit this month. These people, on the condition of anonymity, said that up to $ 700 million (about Rs 6,700 crore) can be raised from this possible listing. Quoting Bloomberg report, sources said that Carlsberg is partnering with Kotak Mahindra Capital Company, JPMorgan Chase & Co. and Citigroup Inc. for this proposed share sale. Is working with local units.

The company is not ready to speak openly

According to these people, the IPO is expected to include a secondary share sale by the Danish liquor company and could happen later this year. Negotiations are ongoing and details like size, structure and timing of the transaction are still subject to change. Representatives for Carlsberg declined to comment other than to reiterate that the company is considering options to increase shareholder value, including an IPO, but no final decisions have yet been made.

The banks did not respond to requests for comment. Liquor companies across the world are trying to unlock value from their Indian operations in view of the increasing alcohol consumption in India’s fast-growing economy. Pernod Ricard SA, maker of Absolut Vodka and Chivas Regal Scotch whisky, is also considering a possible listing of its Indian business and has appointed advisors for the process.

Company is in India since 2007

According to a company presentation, Carlsberg India is the second largest liquor manufacturing company in the country, with a market share of about 22 percent. According to the information given on its website, this company, established in India in 2007, runs 14 breweries (liquor making units) across the country, which includes eight company-owned and six contract manufacturing units. The company’s closest listed competitor, United Breweries Limited, has a market value of about $3.6 billion. Its shares have fallen by about 36 per cent in the last one year, while India’s benchmark Nifty 50 index has declined by 8 per cent.