Coca-Cola plans India bottling unit IPO, may file draft papers in December: Report

Coca-Cola is considering filing a draft prospectus in December for the proposed initial public offering (IPO) of its Indian bottling business, Hindustan Coca-Cola Beverages Pvt, Bloomberg reported, citing people familiar with the matter.

The Atlanta-based drinks company has also added Axis Capital and IIFL Capital Services to the group of banks working on the IPO, the people said. They asked not to be identified as the discussions are private.advertisement❮❯ Read Full StoryCOCA-COLA EYES $10 BILLION VALUATIONThe IPO is expected to largely involve existing investors selling their shares, according to the people cited in the report. Coca-Cola is looking at a valuation of around $10 billion for the bottling business.

Bloomberg News had earlier reported that the IPO could raise around $1 billion.

However, discussions are still ongoing and details such as the timing, valuation and structure of the IPO could change.

Coca-Cola is also working with Kotak Mahindra Capital, Citigroup, JPMorgan Chase and Morgan Stanley on the proposed IPO, local media reports have said.

A listing would help Coca-Cola tap strong investor demand for new offerings in India and unlock value from one of the country's largest bottling operations.

India's IPO market has seen strong activity in recent months. IPO proceeds reached almost $10 billion between July and September, the highest amount raised in any quarter, according to Bloomberg data.

The strong fundraising was helped by blockbuster offerings from the National Stock Exchange of India and SBI Funds Management.

More than $13 billion has already been raised through nearly 250 IPOs in India, the report mentioned, putting the country on track for one of its strongest years for IPO fundraising.- Ends