Carlsberg May Raise $700 Million Via India Listing

Carlsberg A/S has begun early preparations for a potential Initial Public Offering (IPO) of its India business, a move that could raise as much as $700 million, according to people familiar with the matter.

The Danish brewer has appointed Kotak Mahindra Capital and the India units of JPMorgan Chase and Citigroup as advisers for the proposed listing. A draft red herring prospectus may be filed as soon as May, people familiar with the matter said, though final decisions on timing and structure are still under discussion.

The proposed transaction is expected to involve a secondary share sale by the parent company and could take place later this year. However, details including the size and format of the offering may change as deliberations continue.

Why Is Carlsberg Exploring An India Listing Now?

A public offering would align Carlsberg with several multinational companies that have recently listed their Indian operations to benefit from comparatively stronger local valuations.

Over the past two years, companies such as Hyundai Motor, LG Electronics and Carraro India have tapped Indian capital markets to access the country’s large domestic investor base.

For example, Hyundai Motor trades at around 11 times estimated earnings, while its Indian unit trades at roughly 32 times, based on market data. The valuation gap has encouraged global corporations to consider unlocking value from their Indian businesses through local listings.

Pernod Ricard is also evaluating a potential public offering of its Indian arm. Other companies reportedly weighing similar options include:

• Bonfiglioli Transmission

• Hindustan Coca-Cola Beverages

• Fossil Group

In response to media reports, Kenni Leth, head of external communications at Carlsberg Group, said the company is reviewing options to enhance shareholder value, which may include a listing of its India operations. However, he added that no final decision has been taken.

How Strong Is Carlsberg’s Position In India?

Carlsberg India is currently the country’s second-largest brewer, holding approximately 22% share of the domestic beer market, according to company presentations.

As per market data, the India business made around 90 billion rupees, or $1.1 billion, during the fiscal year that concluded in March 2025.

India’s beer market continues to expand, supported by rising incomes, growing cities and changing consumer preferences.

A local listing could give Carlsberg India greater visibility in the market and easier access to capital. It would also allow Indian investors to directly participate in one of the country’s leading beer businesses.

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What Could The IPO Structure Look Like?

People familiar with the discussions indicated that the offering is expected to consist primarily of a secondary share sale by the parent company. That would mean proceeds from the issue would flow to Carlsberg A/S rather than the India unit itself.

A draft prospectus may be submitted in May, though the final timeline will depend on market conditions and internal approvals. The listing, if it proceeds, could take place later this year.

Investor demand, price expectations, and general market circumstances will now play a role in Carlsberg's final decision-making.

Sources:

ET

Business Times

Mint