Coca-Cola is said to consider December filing for India unit’s $1 billion IPO

As per the latest business developments, Coca-Cola Co. is considering filing a draft prospectus in December for an initial public offering of its Indian bottling unit, according to people familiar with the matter.

The Atlanta-based drinks giant has additionally further noted Axis Capital Ltd. and IIFL Capital Services Ltd. to the roster of banks working on the Hindustan Coca-Cola Beverages Pvt deal, the people stated, asking not to be identified because the deliberations are private.

The IPO is anticipated to consist largely of shares sold by existing market participants, with Coca-Cola seeking a valuation of around $10 billion, the people stated. Bloomberg News has noted previously that the IPO could raise around $1 billion.

Deliberations are ongoing, so details including the timing, valuation and structure of the offering may change. Representatives for Coca-Cola and the banks didn’t immediately respond to requests for comment.

Coca-Cola is additionally working with Kotak Mahindra Capital Co., Citigroup Inc., JPMorgan Chase & Co. and Morgan Stanley on the IPO, local media has noted.

A stock-exchange debut would help Coca-Cola tap firm investor demand for new offerings in India, while unlocking value from one of the country’s largest bottling operations. Proceeds from IPOs in India have touched almost $10 billion in July-September — the most ever for the quarter — thanks to blockbuster offerings by National Stock Exchange of India Ltd. and SBI Funds Management Ltd. The country is now on track for one of its best years ever, with over $13 billion boosted already in nearly 250 IPOs, data compiled by Bloomberg show.