Coca-Cola Taps JPMorgan, Citi for 2027 India Bottler IPO, Sources Say

The Coca-Cola Company has appointed JPMorgan and Citi as lead bankers for the planned 2027 initial public offering of its Indian bottling partner, Hindustan Coca-Cola Holdings, according to two sources with direct knowledge of the matter. The selection marks a key step in the beverage giant's strategy to monetize its investment in what it considers a critical growth market.

Banker Selection and IPO Details

The appointments reportedly followed a series of pitches from investment banks to Coca-Cola executives in London earlier this month. In addition to JPMorgan and Citi, one source indicated that Kotak and Morgan Stanley have also been brought on to the deal. The sources requested anonymity as the information is confidential.

Coca-Cola first announced in June its intention to list the unit and potentially sell a portion of its stake. The final valuation for the IPO and the exact percentage of the stake to be sold have not yet been determined. The banks and Coca-Cola did not immediately respond to requests for comment.

Tapping India's Capital Markets

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Coca-Cola's move is part of a broader trend of multinational corporations listing their Indian subsidiaries to capitalize on the country's robust equity markets and attractive valuations. Companies including South Korea's Hyundai Motor and LG Electronics, as well as beverage firms Pernod Ricard and Carlsberg, have pursued similar strategies. These listings often focus on monetizing existing investments for the parent company rather than raising fresh capital for the Indian unit.

About Hindustan Coca-Cola Holdings

Hindustan Coca-Cola Holdings is one of several bottlers for Coca-Cola in India. Key facts about the business include:

• Coca-Cola holds a 60% stake in the company.
• Established in 1997, it operates 14 bottling plants across 10 Indian states.
• In 2023, the unit recorded revenue of 127.35 billion Indian rupees ($1.32 billion) and a net profit of $36 million, according to data from company information platform Toefler.