Carlsberg to Pursue $700 Million Initial Public Offering for Indian Subsidiary

Carlsberg A/S Prepares for Potential India Unit Listing

Carlsberg A/S has selected three banks to advise on a potential listing of its India unit, which could raise up to $700 million. The company has chosen Kotak Mahindra Capital Co. and the local units of JPMorgan Chase & Co. and Citigroup Inc. as advisers on the proposed share sale.

Preparations for the listing are underway, with a draft red herring prospectus potentially being filed as early as May. The offering is expected to consist of a secondary share sale by the parent company and could take place later this year. However, details, including the size, structure, and timing of the transaction, are still being finalized and may change.

A listing would position Carlsberg alongside a growing number of multinational companies tapping Indian markets to capitalize on higher local valuations. Companies such as Hyundai Motor Co., LG Electronics Inc., and Carraro India Ltd. have all listed their Indian operations in the last two years to access the country's deep domestic investor base.

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Carlsberg India, the country's second-largest brewer with a 22% share of the beer market, posted revenue of approximately 90 billion rupees ($1.1 billion) for the fiscal year ended March 2023. 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," according to Kenni Leth, head of external communications.

Other companies, including Pernod Ricard SA, Bonfiglioli Transmission Pvt., Hindustan Coca-Cola Beverages, and Fossil Group Inc., are also considering similar moves.