Carlsberg has taken the first step towards listing its Indian business on the stock market. The Danish brewer said it has confidentially filed draft papers for an initial public offering (IPO), joining a growing list of global companies looking to benefit from India’s strong equity markets, reported Reuters.
The company said the is subject to regulatory approvals and market conditions.
Carlsberg has chosen the confidential filing route, which allows companies to keep IPO documents private while they are reviewed by the market regulator. The details become public only closer to the launch of the share sale.
The proposed IPO will not involve raising fresh money for the business. Instead, the listing will allow Carlsberg Group, which fully owns Carlsberg India, to sell part of its stake, the report mentioned.
Carlsberg is the latest multinational company to look at India’s stock market as a way to unlock value from its local business.
In recent months, several global companies have taken a similar route. Rather than raising fresh funds, they have used Indian IPOs to sell part of their holdings, taking advantage of attractive market valuations. This trend has already been seen with companies such as Hyundai Motor and LG Electronics, which have also pursued stake sales through their Indian businesses.
Analysts believe listing the Indian arm separately could help Carlsberg achieve a higher valuation than if it remained part of the parent company.
It must be mentioned that India remains one of the world’s fastest-growing consumer markets, making it an attractive destination for global companies looking to expand and create value.
The planned Carlsberg India IPO comes at a time when India’s IPO market has slowed slightly after geopolitical tensions in West Asia affected global investor sentiment.
Despite this, the second half of the year is expected to witness several large public offerings.
Among the most anticipated are the proposed IPOs of Jio Platforms and the National Stock Exchange (NSE), both of which are expected to be among the biggest listings in India’s history.
For now, Carlsberg has said the progress and timing of its IPO will depend on regulatory clearances as well as overall market conditions.