Coca-Cola IPO: Beverage Giant Picks Four Banks for India Bottling Arm Listing; $10 Billion Valuation in Focus

Global beverage giant Coca-Cola has taken another step towards listing its India bottling business, a move that could pave the way for one of the country’s largest consumer-sector initial public offerings (IPOs) in recent years. According to a CNBC-TV18 report, the company has selected four investment bankers for the proposed IPO of Hindustan Coca-Cola Holdings, the parent company of Hindustan Coca-Cola Beverages (HCCB).

Coca-Cola IPO: Kotak, Morgan Stanley, JPMorgan, Citi Appointed for Public Issue, Says Report

As part of the IPO process, Kotak Mahindra Capital, Morgan Stanley, JPMorgan and Citi have reportedly been selected as investment bankers for the proposed issue, according to the report. It added that more bankers could be appointed as the listing process progresses. The IPO work is expected to begin in the last week of July.

Coca-Cola IPO likely to be an Offer for Sale

The proposed public issue is expected to be structured entirely as an Offer for Sale (OFS), indicating that The Coca-Cola Company intends to dilute part of its stake instead of raising fresh capital for the Indian bottling business.

In an OFS, proceeds from the issue go to existing shareholders rather than the company itself. That means the listing is expected to serve as a strategic stake monetisation exercise for Coca-Cola while bringing its India bottling arm to public markets.

The proposed listing is being closely tracked because it could provide investors with a rare opportunity to invest directly in one of India’s largest beverage manufacturing and distribution businesses.

About Hindustan Coca-Cola Beverages

Unlike The Coca-Cola Company, which owns and manages the brand portfolio globally, Hindustan Coca-Cola Beverages handles manufacturing, bottling and distribution operations across India. The business plays a central role in supplying products through one of the country’s largest beverage distribution networks.

India has emerged as one of Coca-Cola’s fastest-growing markets, supported by rising urban consumption, expanding quick-commerce platforms, premium product demand and deeper rural penetration.

Coca-Cola Holds Majority Stake in India Bottling Business

The report stated that Coca-Cola currently holds around 60% of Hindustan Coca-Cola Holdings, while the remaining 40% is owned by the Jubilant Bhartia Group. Jubilant Bhartia acquired its stake in December 2024 in a deal valued at approximately Rs 12,650 crore, implying an enterprise valuation of nearly Rs 31,250 crore for the bottling company.

Coca-Cola may continue reducing its ownership over time and could eventually become a minority shareholder. The proposed IPO is therefore seen as the first phase of a broader long-term monetisation strategy rather than a complete exit.

According to the report, the company is exploring a valuation of around $10 billion for the proposed listing. If achieved, the valuation would represent a sharp premium over the level implied during the Jubilant Bhartia transaction, underscoring investor optimism around India’s long-term consumption story.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as “we”). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.