Coca-Cola to raise Rs 9,027 crore via IPO of bottler Hindustan Coca-Cola Beverages
Hindustan Coca-Cola Beverages is a major bottler for MNC giant Coca-Cola in India. The company is planning to will raise as much as Rs 9,027 crore from the markets through an IPO of Hindustan Coca-Cola Beverages.
Kolkata: Coca-Cola is preparing to float an IPO to raise as much as Rs 9,027 crore through its bottling unit Hindustan Coca-Cola Beverages. Hindustan Coca-Cola Beverages is a major bottler for the MNC giant in India and recently, Coca-Cola has sold a minority stake in the company to Jubilant Bhartia Group, which has strengthened the brand linkages of Hindustan Coca-Cola Beverages. According to reports, the plan is to mobilise $1 billion, which works out to about Rs 9,027 crore, given the current exchange rate.
The partnership with Jubilant Group is significant since Jubilant Food Works holds franchises for QSR brands such as Domino's Pizza, Popeyes and Dunkin' Donuts in India and offers synergies between the beverage and food businesses.
When will the IPO hit the market?
According to reports, IPO will be launched and shares listed this summer. The plan is that if it rains during the peak summer season denting demand, the issue could be pushed back to next summer. The company has remained mum officially on this matter.
Coca-Cola is a leading player in the 60,000-crore soft drink market of India. The major brands it owns and manages in this country are Coca-Cola, Thums Up, Sprite, Maaza, Kinley, Dasani, Georgia Coffee and Schweppes. Prior to the IPO, Coca-Cola sold its 40% stake in Hindustan Coca-Cola to Jubilant Bhartia Group for Rs 12,500 crore. This move is part of Coca-Cola's global asset-light strategy, the essence of which is to go light on physical assets and focus on brand, innovation and digital focus.
Financial position of Hindustan Coca-Cola Beverages
The revenue of Hindustan Coca-Cola Beverages for FY25 was Rs 12,751 crore, which marked a y-o-y 9% decline, one of the major reasons for which was tepid demand on account of continuous rains in the summer of 2025 in large parts of the country. Also the company sold some manufacturing plants to independent bottlers. Market experts believe that the food, beverage, and restaurant sectors are now showing signs of recovery, which can further boost the prospects of the Coca-Cola public issue.
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