Coca-Cola Is Said to Consider December Filing for India Unit’s $1 Billion IPO

Coca-Cola Co. is reportedly contemplating a December filing for a potential IPO of its Indian subsidiary, according to sources familiar with the situation. The company, headquartered in Atlanta, has enlisted the services of financial institutions Axis Capital Ltd. and IIFL Capital Services Ltd. to assist with the Hindustan Coca-Cola Beverages Pvt deal, though the identities of the sources remain undisclosed due to the confidential nature of the discussions.

The anticipated IPO is projected to offer shares predominantly from current shareholders, with Coca-Cola aiming for a valuation close to $10 billion, as per reports from Bloomberg News. It is also noted that the offering could potentially raise around $1 billion. As deliberations are still in progress, specifics such as the timing, valuation, and structure of the IPO may undergo alterations.

Coca-Cola is collaborating with Kotak Mahindra Capital Co., Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley on this IPO, as per additional coverage from local media. A successful IPO would enable Coca-Cola to capitalize on robust investor interest in new offerings in India, while also unlocking value from one of the nation's most extensive bottling operations.

India has seen a surge in IPO activity, with proceeds from such offerings reaching nearly $10 billion in July-September, marking the highest figure ever for the quarter. The country is currently poised for one of its best years yet, having raised over $13 billion across nearly 250 IPOs, according to data provided by Bloomberg.