Coca-Cola lines up Kotak, HDFC and Citi for Indian bottling arm Hindustan Coca-Cola IPO; listing aimed at a near ₹ 90,000 crore valuation as FY25 profit slides
The Coca-Cola Company has hired Kotak Mahindra Capital, HDFC Group’s investment banking arm and Citigroup to prepare the initial public offering of its Indian bottling arm, Hindustan Coca-Cola Beverages (HCCB), with a fundraise of about USD 1 billion (~INR 9,000 crore) targeted for as early as summer 2026, according to a report. The proposed deal is being pitched at a valuation close to USD 10 billion.
Restructuring Sets up Listing Runway
The planned IPO follows Coca-Cola’s sale of a 40% stake in HCCB’s immediate parent, Hindustan Coca-Cola Holdings, to the Jubilant Bhartia Group for around INR 12,500 crore, a transaction announced in December 2024 and completed in July 2025. The move aligns with Coca-Cola’s asset-light strategy of refranchising bottling operations.
In comments at the time of the stake sale, HCCB chief executive Juan Pablo Rodriguez called the investment “an important milestone” that complements the company’s strengths and supports “innovation and sustainable progress,” the company said.
Hindustan Coca-Cola IPO: Financial performance
HCCB FY25 performance weakened on a high base: revenue from operations fell 9% year-on-year to INR 12,751.29 crore and net profit dropped 73% to INR 756.64 crore. In FY24, HCCB had reported INR 14,021.55 crore in revenue and INR 2,808.31 crore in net profit, aided by exceptional gains from prior refranchising.
Coca-Cola’s global management has said recent portfolio and bottling changes are intended to “unlock growth opportunities” in key markets including India, underscoring the company’s focus on execution as it readies the HCCB IPO.
Deal Mechanics & Market Context
Bankers appointed to the HCCB IPO are expected to steer the process of sizing the issue and building a syndicate; more advisers could join as the timetable firms up, people tracking the matter said. The listing window could slip into 2027 if summer beverage demand is significantly disrupted by rains, as seen last year, according to executives cited in industry reports.
HCCB bottles and distributes brands such as Coca‑Cola, Thums Up, Sprite, Maaza, Kinley and Dasani across large parts of southern and western India. Competitive intensity in carbonated soft drinks has risen, even as multinational groups increasingly tap Indian markets via listings of local arms.
The mandate to Kotak Mahindra Capital, HDFC and Citigroup suggests Coca-Cola aims to capture buoyant primary market interest in large consumer names after a string of big-ticket IPOs in 2024–25. Final sizing, structure and timing will depend on market conditions and regulatory clearances, people aware of the plan indicated.
Hindustan Coca-Cola Beverages IPO: Key Highlights
- HCCB IPO Proposed raise: about USD 1 billion (~INR 9,000 crore).
- Indicative valuation: near USD 10 billion.
- Bankers: Kotak Mahindra Capital, HDFC Group, Citigroup (others may join).
- Timeline: target summer 2026; could defer if monsoon dampens peak demand.
- FY25 performance: revenue INR 12,751.29 crore (-9% YoY); PAT INR 756.64 crore (-73% YoY).
- Pre-IPO reshuffle: Jubilant Bhartia bought 40% of HCCB’s parent for ~INR 12,500 crore; closed July 2025.
- Portfolio: Coca‑Cola, Thums Up, Sprite, Maaza, Kinley, Dasani.
Conclusion
Coca-Cola’s move to appoint bankers puts HCCB on a formal path to public markets after a year of ownership realignment and a reset in earnings. Execution on timing and issue size will hinge on summer demand, market conditions and regulatory milestones, even as the company positions its bottling network and brands for the next leg of growth.
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