Carlsberg A/S has confidentially submitted draft documents for an initial public offering of its Indian business, according to a public advertisement.
The proposed public issue is likely to comprise entirely a secondary sale of shares by the Danish brewing company and could be launched later this year, according to people familiar with the matter, who requested anonymity because the information is private.
Bloomberg News reported on Thursday, citing people familiar with the development, that Carlsberg had confidentially filed draft IPO papers and was aiming to raise as much as $700 million.
Carlsberg's shares climbed by as much as 6% in Copenhagen on Thursday following the report.
Carlsberg India is the country's second-largest brewer, commanding an estimated 22% market share. Since entering the Indian market in 2007, the company has built a network of 14 breweries, comprising eight owned manufacturing facilities and six contract brewing units, according to information available on its website.
India's rapidly expanding consumer market has prompted several global alcohol companies to explore ways to unlock value from their local businesses. Pernod Ricard SA, which owns brands such as Absolut Vodka and Chivas Regal Scotch whisky, has also been evaluating the possibility of listing its Indian operations.
According to the people, Carlsberg has appointed Kotak Mahindra Capital Co. along with the Indian subsidiaries of JPMorgan Chase & Co. and Citigroup Inc. to manage the proposed offering.
The people added that the final size, structure and timeline of the IPO remain under consideration and could still change. Carlsberg did not respond to a request for comment.
The confidential filing comes amid a sharp rise in India's IPO pipeline. Companies filed draft prospectuses seeking to raise a record amount in June, including proposed mega offerings from Jio Platforms Ltd. and National Stock Exchange of India Ltd., which have the potential to become the country's two largest IPOs. Data compiled by Primedatabase.com showed that around 12 issuers collectively sought to raise more than 885 billion rupees ($9.3 billion) during the month, surpassing the previous monthly record of over 700 billion rupees set in July last year, when 32 companies submitted draft papers.
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