Carlsberg Eyes Up to $700 Million from India Unit Listing

Carlsberg A/S has appointed three investment banks and initiated groundwork for a possible listing of its India business that could raise up to $700 million, as per various news reports.

The Danish brewer has lined up Kotak Mahindra Capital Co., along with the Indian units of JPMorgan Chase & Co. and Citigroup Inc., to advise on the proposed share sale. A draft red herring prospectus (DRHP) could be filed as early as May, as mentioned in news reports.

The proposed offering is expected to be structured as a secondary share sale by the parent company and could take place later this year. However, key details, including the issue size, structure, and timeline, are still under consideration and may evolve.

Part of Broader MNC India Listing Trend

A potential listing would place Carlsberg among a growing list of multinational corporations tapping Indian equity markets to benefit from relatively higher domestic valuations and strong investor appetite.

In the past two years, companies such as Hyundai Motor Co., LG Electronics Inc., and Carraro India Ltd. have listed their Indian arms to access the country’s deepening capital markets. Notably, Hyundai Motor trades at about 11 times estimated earnings for the current year, compared with roughly 32 times for its listed Indian subsidiary.

Pernod Ricard SA, maker of Absolut vodka and Chivas Regal Scotch whisky, is also evaluating a possible IPO of its India operations. Other firms considering similar moves include Bonfiglioli Transmission Pvt., Hindustan Coca-Cola Beverages, and Fossil Group Inc.

Also Read: RBI Releases Premature Redemption Calendar for 33 SGB Tranches 

Company Says No Final Decision Yet

Responding to queries, Kenni Leth, head of external communications at Carlsberg Group, said the company is “exploring different options for increasing shareholder value, which may potentially include an IPO of our business in India, but no final decision has been made,” citing the company’s annual report.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.