Coca-Cola mulls $1 billion IPO for Indian bottling arm, Hindustan Coca-Cola beverages

Daijiworld Media Network – New Delhi

New Delhi, Oct 17: Global beverage giant Coca-Cola Co. is reportedly exploring an initial public offering (IPO) for its Indian bottling subsidiary, Hindustan Coca-Cola Beverages Pvt Ltd. (HCCB), which could raise around $1 billion.

According to sources familiar with the development, the proposed IPO could value the bottling arm at nearly $10 billion. Discussions with investment bankers have taken place in recent weeks, though no official mandates have been assigned yet. The plan is still in the preliminary stages, and final decisions regarding the timing, structure, and size of the issue are yet to be made.

If the proposal materialises, the IPO could likely take place next year. A spokesperson for Coca-Cola has so far declined to comment on the development.

The move aligns with a growing trend of global corporations listing their Indian subsidiaries to tap into the country’s buoyant equity markets. Earlier this month, LG Electronics raised $1.3 billion through its India IPO, while Hyundai Motor Co. launched a record-breaking $3.3 billion listing last year.

With India emerging as one of Coca-Cola’s fastest-growing markets, the potential listing of HCCB is seen as a strategic step to strengthen the company’s presence and unlock greater shareholder value in one of the world’s largest consumer economies.