Carlsberg wants to raise $700M via IPO in India
What's the story
Danish brewer Carlsberg A/S is gearing up to file draft papers for an initial public offering (IPO) of its Indian unit, possibly this month. The move could raise as much as $700 million, sources familiar with the matter told Bloomberg. The company is said to be working with Kotak Mahindra Capital, JPMorgan Chase & Co, and Citigroup Inc. on the proposed share sale.
IPO details
IPO likely to be secondary share sale
The upcoming IPO is expected to be a secondary share sale by Carlsberg. While the exact size, structure, and timing of the transaction are still being discussed, it could happen later this year. Representatives for Carlsberg have not commented on the matter beyond saying that they are considering options to enhance shareholder value including an IPO.
Market standing
Carlsberg India's market share and breweries
Carlsberg India is the country's second-largest brewer with a market share of around 22%. The company was established in India in 2007 and runs 14 breweries across the country. These include eight owned by the company and six contract manufacturing units. The company's closest listed rival, United Breweries Ltd, has a market value of about $3.6 billion but its shares have dropped some 36% in the last year.