Restaurant India News: Coca-Cola Plans $1 Billion HCCB IPO, Invites Banks for Underwriting Mandate

The Coca-Cola Company has initiated the process for the proposed initial public offering (IPO) of its Indian bottling arm, Hindustan Coca-Cola Beverages (HCCB), by inviting leading global and domestic investment banks to compete for underwriting roles. According to a Bloomberg report, the public issue could raise around $1 billion.

The investment bank presentations are scheduled to take place in London, where Rothschild and Co, the financial adviser to Coca-Cola on the transaction, will oversee the selection of the merchant banking syndicate.

According to the report, Coca-Cola is targeting a valuation of nearly $10 billion for HCCB. However, discussions remain ongoing, and the final valuation, issue size, listing timeline and share-sale structure are yet to be finalised.

If the IPO moves forward, HCCB will join a growing list of multinational companies opting to access India's capital markets. Recent listings include Hyundai Motor India, which completed the country's largest-ever IPO by raising $3.3 billion, while LG Electronics India has also listed its consumer electronics business in the country.

Hindustan Coca-Cola Beverages is among India's largest non-alcoholic beverage manufacturers and bottling companies. Headquartered in Bengaluru, the company operates manufacturing facilities across 12 states and supplies products to 236 districts in southern and western India. Its distribution network reaches more than 1.7 million retail outlets, while its operations are supported by over 5,000 employees across 14 manufacturing plants.

The proposed listing follows Coca-Cola's recent decision to sell a 40 percent minority stake in HCCB's parent holding company to Jubilant Bhartia Group for around Rs 12,500 crore. The transaction aligns with Coca-Cola's broader strategy of increasing local participation in its bottling operations while maintaining a strategic presence in key growth markets.

The proposed IPO marks another significant development in India's consumer goods and beverage sector, where multinational companies are increasingly exploring public listings to strengthen their long-term growth strategy and capital market presence