Carlsberg A/S is reportedly nearing the filing of draft papers for an initial public offering of its Indian unit, with expectations to do so as early as this month. The potential listing is projected to raise as much as $700 million (approximately Rs 6,650 crore) and is anticipated to be a secondary share sale by the Danish brewer. The company is collaborating with Kotak Mahindra Capital Co., and the local units of JPMorgan Chase & Co. and Citigroup Inc. to advise on the proposed transaction.
Deliberations regarding the IPO are ongoing, and details such as the size, structure, and timing of the transaction remain subject to change. Representatives for Carlsberg have declined specific comments beyond reiterating that the company is exploring various options, including an IPO, to enhance shareholder value, but no final decision has been made. The banks involved have not responded to requests for comment.
Carlsberg India, established in 2007, holds a significant position as the country’s second-largest brewer, commanding about 22% of the market share. It operates 14 breweries across India, comprising eight company-owned facilities and six contract manufacturing units. The move to list comes as global alcohol makers increasingly seek to unlock value from their Indian operations, capitalizing on rising consumption in one of the world's fastest-growing major economies.
The company's closest listed competitor, United Breweries Ltd., has a market value of around $3.6 billion. Over the past year, United Breweries' shares have seen a decline of approximately 36%, contrasting with an 8% drop in India’s benchmark Nifty 50 Index. This trend suggests a challenging market for the brewing industry, yet the potential for growth in India remains an attractive prospect for international companies like Carlsberg and Pernod Ricard SA, which is also exploring a potential listing of its India business.
