Coca-Cola Plans Summer IPO of Hindustan Coca-Cola Beverages, Eyes $10 Bn Valuation

Coca-Cola is preparing to take its Indian bottling business, Hindustan Coca-Cola Beverages (HCCB), public through an IPO later this year.

The global beverage company has appointed investment banks including Kotak, HDFC Group, and Citibank to manage the proposed IPO. The issue is expected to raise around $1 billion, or approximately ₹9,000 crore, according to a report by The Economic Times.

Coca-Cola is targeting a summer listing and is aiming to value HCCB at close to $10 billion. However, the company may consider delaying the IPO to next year if heavy rains affect peak summer beverage demand, similar to what happened last year, ET reported.

The proposed listing comes amid strong investor interest in large consumer brands. ET noted that multinational companies such as Hyundai Motors India and LG Electronics have completed major IPOs in recent years, raising $3.3 billion and $1.3 billion, respectively.

Coca-Cola is the largest player in India’s ₹60,000-crore soft drinks market. Through HCCB, the company produces and distributes popular brands including Coca-Cola, Thums Up, Sprite, Maaza, Kinley, Dasani, Georgia Coffee, and Schweppes.

The IPO plans follow Coca-Cola’s sale of a 40% stake in Hindustan Coca-Cola Holdings, the parent company of HCCB, to Jubilant Bhartia Group for ₹12,500 crore over a year ago. The move aligns with Coca-Cola’s global strategy of reducing ownership in capital-heavy bottling operations and focusing more on brands, innovation, and digital initiatives, ET said.

Jubilant Bhartia Group also controls Jubilant FoodWorks, which operates brands such as Domino’s Pizza, Popeyes, and Dunkin’ in India, creating potential synergies between food and beverage businesses.

An HCCB spokesperson told ET that the company remains focused on improving operations under its new leadership and declined to comment directly on the IPO plans. The spokesperson also said recent pricing changes under GST were aimed at offering better value to consumers, adding that speculation around other developments should be treated cautiously.

Notably, Jubliant's rivals Devyani International and Sapphire Foods announced a merger earlier this year to combine operations of KFC and Pizza Hut in India. Devyani International is backed by RJ Corp, one of PepsiCo’s largest bottling partners.